Electric Vehicle Handbook: Clarifying All Your Inquiries about Electric Cars
In the ever-evolving automotive landscape, electric vehicles (EVs) are making their mark in Australia. However, the upfront purchase price of electric cars in Australia remains significantly higher than comparable petrol cars, typically by around $20,000 on average.
This price premium for EVs reflects higher battery costs and import/shipping factors since Australia lacks large EV manufacturing. For instance, the MG ZST petrol SUV costs about AUD 33,990, while its electric counterpart, the MG ZS EV Long Range, costs about AUD 55,990—a difference of approximately AUD 22,000.
However, the entry-level price for EVs has decreased in 2023 due to affordable models from Chinese manufacturers like the BYD Dolphin, MG4, and GWM Ora, with prices starting just under AUD 40,000. In contrast, equivalent small ICE cars can be priced significantly lower, often starting in the low $30,000s or less.
Despite the higher upfront costs, EVs offer several advantages. They hold their value favorably against ICE vehicles, in some cases better. Moreover, EVs have lower ongoing maintenance costs due to fewer moving parts, which can partially offset the higher purchase price over time.
In terms of basic 'fuel' costs, EVs are much cheaper compared to ICE cars. Additionally, numerous apps enable the location of charging stations, covering both the eastern and western seaboards. Roadside assist organizations have EV-specialist mobile units to rapid-charge EVs to get them moving again.
The major factor in determining when an EV becomes better for the environment in its lifespan against an ICE model is the source of electricity. With Australia's National Energy Market (NEM) in the midst of its own revitalization, the shift towards renewable energy sources may further tip the balance in favour of EVs.
As for infrastructure, while it is currently limited, the number of public EV charging points is set to more than double in the next few years. The stability provided by EVs, as they can feed into the grid, is another potential advantage.
Looking ahead, the price of second-hand EVs can make excellent purchases, and it is projected that the electric car purchase price will be on par with ICE models in the US by 2024 and Europe by 2027.
Moreover, advancements in technology hold promising possibilities. Solid-state batteries are being developed, promising an EV that can travel twice as far as the equivalent li-ion battery EV, maintain 90 percent of its capacity for up to 33 years, and recharge from empty to full in just 10 minutes.
In conclusion, while the upfront cost of electric vehicles in Australia is currently higher than that of ICE vehicles, the lower ongoing costs, environmental benefits (with the right energy sources), and technological advancements suggest that EVs could become a more attractive option in the near future.
- The automotive industry, particularly in Australia, is witnessing a shift towards electric vehicles (EVs) due to advancements in technology, despite their higher upfront purchase price.
- The finance sector plays a crucial role in the EV market as the entry-level prices for EVs have decreased in 2023, making them more affordable, with models like the BYD Dolphin, MG4, and GWM Ora starting just under AUD 40,000.
- In the growing transportation sector, EVs not only provide benefits such as lower ongoing maintenance costs and better resale value compared to Internal Combustion Engine (ICE) vehicles, but also offer the potential for significant environmental advantages, particularly with the growth of renewable energy sources and advancements in battery technology like solid-state batteries.
