The research found that while a majority of drivers wanted to purchase an EV next time they buy a car, the government's focus on improving charging infrastructure - at the expense of helping with the upfront cost of an EV - is putting the brakes on sales.
New data, released today by the Australian Automobile Association, reveals sales of fully electric vehicles fell by 25% in the three months to September.
Vehicle emissions account for almost 20% of the state's overall emissions.
While the biggest obstacle for choosing an electric vehicle is the upfront cost, the government's EV policies are almost entirely focused on expanding and improving charging infrastructure.
The Australia Institute surveyed 800 NSW residents between 6 September and 10 September 2024. The survey has a margin of error of plus or minus 3.5%.
Key findings:
- A majority of NSW residents (51%) are considering an EV for their next vehicle purchase.
- NSW residents' primary motivations for EV adoption include:
- Helping tackle climate change/reduce carbon emissions (58%)
- Avoiding paying for petrol (57%)
- NSW resident's major obstacles to EV purchases include:
- The upfront cost of an EV (60%)
- The availability of charging infrastructure (47%)
- A majority of NSW residents support EV policies, including:
- A government-built network of charging stations (70%)
- Requiring new apartment developments to include EV charging stations (67%)
- Rebates for installation of charging stations (65%)
- Direct subsidies to reduce upfront cost of EVs (64%)
"The NSW state government is missing the mark when it comes to helping people get behind the wheel of an electric car," said Matt Grudnoff, Senior Economist at The Australia Institute.
"Motorists want to do the right thing by the environment, while also avoiding the financial burden of filling up at the petrol station. The problem is that the cost of switching to an EV is seen as a serious barrier.
"While the NSW government has made a good start in encouraging the uptake of EVs, scrapping the $3,000 upfront subsidy and the exemption from stamp duty is a step backwards.
"Our research shows the need for a recalibration of NSW's EV policies to better align with public sentiment and address the primary barriers to EV adoption."
