Report Overview

An increasing demand for sustainable transportation, falling battery costs, rising variety of EV models, and government incentives are expected to drive the Australia & New Zealand Electric Vehicle Market during the forecast period between 2024 and 2030.

Australia and New Zealand Electric Vehicle Market – Industry Trends & Forecast Report, 2030

The Australia and New Zealand Electric Vehicle Market size by value was estimated at USD 23.12 billion in 2023. During the forecast period between 2024 and 2030, the Australia & New Zealand Electric Vehicle Market size is projected to grow at a CAGR of 9.85% reaching a value of USD 36.66 billion by 2030. Prominent drivers of the market are the increasing government policies, subsidies, and tax incentives that promote EV adoption. The lower operating costs of electric vehicles compared to traditional gasoline or diesel vehicles, among other factors, will contribute to market expansion during the forecast period.

By volume, the Australia & New Zealand Electric Vehicle Market size was estimated at 178.2 thousand units in 2023. During the forecast period between 2024 and 2030, the Australia & New Zealand Electric Vehicle Market size is projected to grow at a CAGR of 7.09% reaching the volume of 194.5 thousand units by 2030. The anticipated decrease in battery pack prices, as projected by the International Council on Clean Transportation in Australia & New Zealand is expected to boost the adoption of EVs. Also, the adoption of electric vehicles has increased in various regions and countries due to rising gasoline prices. EVs, which run on lithium-ion batteries, offer a hybrid charging system instead of traditional gasoline or diesel engines. EVs are environmentally friendly and do not emit harmful greenhouse gases during operation. Furthermore, electricity is significantly cheaper than fossil fuels, reducing the overall operating costs of electric vehicles compared to conventional gasoline and diesel vehicles.

Electric Vehicle – Overview

An electric vehicle (EV) is a type of transportation that uses electric motors for movement. These vehicles can draw power from external sources, such as overhead lines, or operate independently with energy stored in batteries. Some EVs use solar panels or fuel cells to generate electricity. Industrial electric vehicles, like electric trucks, are becoming more popular worldwide.

Australia & New Zealand Electric Vehicle Market

Growth Drivers

Government Incentives

In New Zealand, the Clean Car Discount (CCD) scheme was pivotal in promoting electric vehicles. From July 2021, it offered rebates up to NZD 7,015 for electric and hybrid-electric vehicles and imposed penalties on high-emission cars. This incentive structure spurred EV sales, which saw a surge before its cancellation at the end of 2023. The CCD's impact was significant, driving electric and hybrid-electric vehicles to account for over half of new car sales in December 2023. However, the newly elected government decided to end the program, leading to uncertainty about future government incentives.

Increasing Demand for Sustainable Transportation

New Zealand has seen a marked increase in demand for electric and hybrid-electric vehicles. In December 2023, these vehicles made up 50.8% of new car sales, an 18.1% increase year-on-year. This shift is driven by a combination of factors: government incentives like the Clean Car Discount, growing environmental awareness, and expanded EV infrastructure, including a nationwide charging network. Similar trends are seen in the Australian Capital Territory (ACT), where electric car sales grew by 165% in 2023, indicating a broader movement toward sustainable transportation in the region.

Challenges

High Initial Cost

The high initial cost of electric vehicles (EVs) continues to restrain the market in Australia and New Zealand. Despite government incentives like the Clean Car Discount, consumers are deterred by the upfront price of EVs compared to traditional petrol and diesel vehicles. This financial barrier is exacerbated by limited awareness of long-term savings from reduced fuel and maintenance costs. In both countries, high cost hinders wider adoption of EVs, contributing to the slow pace of transition toward sustainable transportation.

Impact of Escalating Geopolitical Tensions on Australia & New Zealand Electric Vehicle Market

Geopolitical tensions can have a multifaceted impact on the Australia & New Zealand Electric Vehicle Market, mainly due to the evolving dynamics between China and Western countries. China's dominance in the EV supply chain, especially in lithium-ion battery production, raises concerns about supply security and market competition. As BYD, a major Chinese EV manufacturer, expands globally, it's gaining traction in the Australian and New Zealand markets. However, escalating geopolitical tensions could lead to trade restrictions or anti-subsidy investigations, affecting the flow of EV components and materials. These developments underscore the broader impact of international relations on the growth and sustainability of the EV market in these regions.

Australia & New Zealand Electric Vehicle Market

Segmental Coverage

Australia & New Zealand Electric Vehicle Market – By Vehicle Type

By vehicle type, the Australia & New Zealand Electric Vehicle Market is split into Passenger Car and Commercial Vehicle segments. The passenger cars segment holds a higher share in the Australia & New Zealand Electric Vehicle Market by vehicle type. It can be attributed to their safety, comfort, and reliability. They are also the fastest-growing segment in the industry. New technologies like the Internet of Things (IoT) and Advanced Driver Assistance Systems (ADAS) are enhancing safety in passenger vehicles, driving the demand in Australia & New Zealand region.

Australia & New Zealand Electric Vehicle Market – By Propulsion Type

On the basis of propulsion type, the Australia & New Zealand Electric Vehicle Market is split into Battery Electric Vehicle and Hybrid Electric Vehicle segments. The hybrid electric vehicle segment holds a higher share in the Australia & New Zealand Electric Vehicle Market by propulsion type. It is primarily due to its versatility and fuel efficiency. HEVs combine an internal combustion engine with an electric motor, providing the flexibility to switch between power sources. This duality offers a longer driving range and less range anxiety compared to battery-electric vehicles, making them attractive to consumers transitioning from traditional petrol or diesel cars. Additionally, HEVs often benefit from government incentives, such as the Clean Car Discount in New Zealand, further boosting their popularity in a market transitioning towards electrification.

Australia & New Zealand Electric Vehicle Market – By Drive Type

Based on drive type, the Australia & New Zealand Electric Vehicle Market is divided into All Wheel Drive, Front Wheel Drive, and Real Wheel Drive segments.

Australia & New Zealand Electric Vehicle Market – By Range

Based on range, the Australia & New Zealand Electric Vehicle Market is divided into Up to 150 Miles, 151–300 Miles, and Above 300 Miles segments.

Australia & New Zealand Electric Vehicle Market – By Component

Based on component, the Australia & New Zealand Electric Vehicle Market is divided into Battery Pack & High Voltage Component, Motor, Brake, Wheel & Suspension, Body & Chassis, and Low Voltage Electric Component segments.

Competitive Landscape

Major players operating in Australia & New Zealand Electric Vehicle Market include Tesla, MG, BYD, Nissan, Kia, Hyundai, Mercedes-Benz, Volvo, Cupra, and GWM Ora. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2024 - General Motors (GM) announced its plans to introduce the GMC brand to China, Australia, and New Zealand in 2024. GMC aims to capitalize on growing electric vehicle demand in these new markets, with plans to launch the Sierra EV by late 2024 or early 2025.

• In 2023 - Uber announced plans to add 10,000 electric cars to its fleet in Australia as part of its commitment to achieve zero carbon emissions by 2040. This expansion, in partnership with EVDirect, will see Uber offering electric vehicles like the BYD Atto 3 to drivers with flexible financing. In the third quarter of 2023, Uber recorded over 1.2 million electric rides in Australia, indicating growing adoption of EVs. This initiative supports Uber's sustainability goals while boosting the second-hand market for EVs in Australia.

Scope of the Report

By Vehicle Type

• Passenger Car

• Commercial Vehicle

By Propulsion Type

• Battery Electric Vehicle

• Hybrid Electric Vehicle

By Drive Type

• All Wheel Drive

• Front Wheel Drive

• Rear Wheel Drive

By Range

• Up to 150 Miles

• 151–300 Miles

• Above 300 Miles

By Component

• Battery Pack & High Voltage Component

• Motor

• Brake, Wheel & Suspension

• Body & Chassis

• Low Voltage Electric Component