A new study by a vehicle subscription provider has found that increasing petrol prices — which hit a seven-year high last year — will see one in three Australians consider an electric vehicle within the next two years.
The second Carbar Future Finance and Mobility report finds that Australian motorists spend an average of $1991 on petrol annually.
A stratified sample of more than 1049 Australians over the age of 21 were surveyed by the report on automotive and finance trends.
The report says that Australians estimate they spend (or lose) up to $8926 annually on their car. Those costs include petrol ($1,991), depreciation ($1,758), car maintenance ($1,024), car insurance ($970), and registration ($925).
These higher expenses are followed by repairs ($846), car repayments ($781), parking ($329) and speeding, parking, and other driving infringements ($302).
Nearly seven in ten (68%) car owners aged 21 and over agree that the increase in the price of petrol in 2021 has put a lot of strain on their budget, with 36% strongly agreeing.
Intention to adopt an EV
A third (33%) of the survey respondents, the equivalent of 5.9 million Australians, says they are likely to consider an electric vehicle in the next two years, with 12% (almost 2.2 million Australians) saying they are very likely to consider one.
One in three (34%), the equivalent of 6.5 million Australians aged 21 and over, agree that the price of petrol and recent increases have made them more likely to consider buying an electric vehicle in the next two years.
Seven in ten (71%), the equivalent of 4.2 million Australians, say they would consider taking out a subscription to an electric vehicle.
Intention to buy in 2022
More than one in four (27%) Australians aged 21 and over plan to buy a car in 2022, including 14% who plan to buy a new one and 15% who plan to buy a second hand one. Of those, 2% intend to buy both says the report.
However, one in four (24%), expect it to be somewhat or very difficult for them to access a car going into 2022, citing issues around affordability (66%), reliability of second-hand cars (28%), long wait times for delivery of new vehicles (21%) and not trusting car dealers (15%).
The most preferred vehicle type for 2022 is a family car (SUV) (now 27% compared to 28% in 2021) and an economical car (low fuel costs to run) (now 22% compared to 26% in 2021), followed by an electric car (now 19% compared to 15% in 2021).
Growth in subscription
Almost half (48%) say they would consider a subscription with an electric vehicle organisation that is not a typical auto industry participant. This includes environmental not for profit organisations (26%) or energy retailers (25%) and telecommunications/internet providers (12%).
While others would prefer a traditional manufacturer, including four in five (39%) who would consider an automotive manufacturer, one in five (22%) who would consider an online automotive retailer, and one in five (21%) who would consider Carsales (online marketplace).
“Clearly, rising petrol prices are encouraging more Australians to look into EVs. But with many EVs still costing Australians over $40,000 to own, there is some hesitancy,” Carbar founder and chief executive Des Hang says.
“We were also surprised to learn just how aware many Australians were about the cost of car depreciation. It is one of the main reasons why we believe subscription is an affordable alternative to ownership, as it negates this loss,” he says.
