A new report by NRMA Insurance highlights driving range anxiety and recharging as barriers to electric vehicle adoption, emphasizing the need for ongoing government support for plug-in hybrids (PHEVs), according to the National Automotive Leasing and Salary Packaging Association (NALSPA).
The report found the top reasons people are not considering an EV were concerns about driving range (54%), lengthy charging times (53%), and a lack of public charging stations (52%)—factors which NALSPA says PHEVs help to address.
Affordability (52%) was also a factor. However, NALSPA says the Fringe Benefits Tax (FBT) exemption for eligible battery electric vehicles (BEVs) and PHEVs was bringing the cost of EVs down for everyday working Australians.
NALSPA chief executive Rohan Martin says PHEVs help alleviate range anxiety concerns and encourage more people to begin their electric driving journey.
“PHEVs are the stepping stone to pure electric driving – they’re a practical solution for motorists who seek the benefits of lower running costs and lower emissions but may regularly drive longer distances or have concerns about driving range, charging times and lack of public charging stations associated with a pure BEV,” Martin says.
“We know drivers primarily use PHEVs as electric vehicles but also have the security of a conventional engine for longer trips or when charging isn’t readily available.
“PHEVs also align with Australia’s preferred vehicle types. Australians love their larger dual-cabs and utes, but now and soon, a greater variety of these harder-to-fully-electrify vehicles will likely be available in PHEV form compared to BEV.
“PHEVs enable Australian motorists to commence their electrification journey earlier than would otherwise be the case, supporting Australia’s efforts to meet emissions targets.
“Our data shows PHEV uptake is increasing among everyday working Australians living in the outer suburbs and regional areas as these vehicles better suit their driving needs.
“Sales of SUV and passenger PHEVs are surging in Australia, up almost 130 per cent in the first half of this year compared to the year before.
“This increase is due to PHEVs meeting the driving needs and preferences of more working Australians coupled with growing model availability like the soon-to-be-released Ford Ranger PHEV and BYD Shark PHEV, underpinned by the FBT exemption, making these a realistic and affordable option for motorists.
“Continued government support of PHEVs is necessary to help more Australians transition their lifestyle to electrified lower emissions. To support Australia in meeting its emissions targets and to keep environmentally friendly larger vehicles affordable for more Australians, we encourage our national leaders to extend the FBT exemption for PHEVs beyond April 2025,” he says.
