Recent data on electric vehicle (EV) registrations in Australia highlights a significant disparity in EV ownership across different socio-economic areas. The findings from the Australian Automotive Association reveal that wealthier inner-city neighbourhoods are leading in EV adoption, while outer suburbs and regional areas struggle to keep pace. This trend poses a challenge for the Albanese government, which aims to achieve a broader uptake of EVs as part of its ambitious emissions reduction targets.
According to the data, zones where EV uptake surpasses 5 percent of total car registrations are predominantly in inner-city districts of Sydney, Melbourne, Brisbane, and Canberra. Conversely, many outer suburbs report penetration rates between 1 percent and 3 percent, while some regional areas have rates falling below 1 percent, effectively making them “EV deserts.” For instance, Longreach in Queensland recorded no EVs among 2,931 car registrations, while Broken Hill had merely 11 EVs from a total of 13,908 vehicles, resulting in a penetration rate of just 0.06 percent.
The January registration data, published in September, indicates that penetration rates provide a clearer picture of the EV transition than total registrations, which can be misleading. For the Albanese government to meet its goal, over 50 percent of total car purchases in the next decade must be electric.
The suburb of Haberfield in Sydney’s inner west has the highest proportion of EVs, reaching nearly 15 percent of total car registrations. This figure is partly attributed to the significant number of registrations from the EV rideshare company Splend, headquartered in the area. Other postcodes with notable EV concentrations include Acton in Canberra and the Sydney CBD, both exceeding 7 percent EV penetration.
In terms of raw numbers, the Brisbane CBD leads with over 1,700 EVs out of 32,000 total registered vehicles. Large suburban areas such as Kellyville and Beaumont Hills in Sydney, as well as Tarneit and Point Cook in Melbourne’s west, follow closely behind in EV registrations.
The federal government has introduced various incentives to encourage EV adoption, particularly for workers considering a shift from fossil fuel vehicles. Rohan Martin, chief executive of the National Automotive Leasing and Salary Packaging Association, noted that the fringe benefits tax (FBT) exemption is particularly beneficial in some outer suburbs where more space for garages and street parking allows for easier charging options.
Martin stated, “Everyday workers, including teachers, nurses, and firefighters, tell our members that they simply wouldn’t have bought an electric vehicle if it wasn’t for the tax cut on EVs.” Despite these incentives, the AAA data reveals that some areas with high FBT exemptions, such as Hoppers Crossing and Point Cook in Melbourne’s south-west, still show low EV penetration rates of between 1.3 percent and 3.1 percent.
The situation is even more pronounced in regional cities like Wagga Wagga, Bendigo, Ballarat, Toowoomba, and Wollongong, where only Wollongong exceeds 1.3 percent of the total market share.
Michael Hopkins, chief executive of the National Transport Commission, highlighted that the rapid adoption of EVs in inner-city areas is inevitable due to generally higher household incomes and the suitability of EVs for urban commutes. Yet, he acknowledged that the higher cost of EVs compared to internal combustion engines and concerns regarding driving range need to be addressed to stimulate growth in outer suburbs and remote regions. “That’s going to be the hard part,” he said.
Bridget McKenzie, the Coalition’s transport spokeswoman and a resident of regional Wodonga, pointed out that local dealerships are facing challenges in selling EVs. She remarked, “When you put a horse float, a trailer, or a caravan on the back of your car and load it up with your kids and your tent, that [EV] range reduces significantly.”
The data underscores the need for targeted strategies to enhance electric vehicle adoption across all Australian communities, especially in outer suburbs and regional areas, to fulfill the government’s sustainability objectives.
