– Promoting eco-friendly mobility technology development and innovation through future fuel strategy –
– Announcing incentives for electric vehicles to reduce carbon emissions by the state government –
– Expected entry into Korea’s electric vehicle and hydrogen fuel cell mobility market –
In February 2021, the Australian federal government announced a Future Fuel Strategy discussion paper to expand the supply of eco-friendly vehicles such as electric and hydrogen vehicles. Through this, it expanded the range of consumer choices for eco-friendly mobility and presented a vision for industrial development to reduce carbon emissions. Since the beginning of this year, opinions from related industries have been collected, and the government's investment programs and cooperation priorities are planned to be decided. The direction of Australia's policy is to expand consumer choice by removing barriers to the launch of new technology vehicles, and to stimulate the market and induce private sector investment through government investment in early-stage technology. In addition, it plans to improve information accessibility so that citizens can make wise choices. Five priorities were identified for the implementation of the plan.
Five priorities for future fuel strategy
The Australian Federal Government has announced that its future fuel strategy will prioritize technology development and infrastructure expansion rather than subsidizing the purchase of eco-friendly vehicles. An amount of AUD 7450 million will be invested in the Future Fuels Package, of which AUD 7190 million will be allocated to the Future Fuels Fund to be used for the development of the eco-friendly mobility industry, such as expansion of charging station infrastructure.
In July, the Australian Renewable Energy Agency (ARENA) announced that it would invest AUD 7 million in the first round of the Future Fuel Fund to install a total of 2455 electric vehicle charging stations across Australia. Five companies - Evie Networks, Ampol, Engie, Chargefox and Electric Highways Tasmania - have been selected to build new fast charging stations in major cities and regional centers.
On the other hand, the related industry took a negative stance saying that although it is a policy announced to revitalize the electric vehicle market, it is not realistic. The Australian Electric Vehicle Council has urged the government to introduce a purchase subsidy, emphasizing that direct incentives from the consumer's point of view can increase sales and allow EV manufacturers to launch a variety of models to increase their options. It was also pointed out that Australia's goal of supplying eco-friendly vehicles and minimum emission standards for carbon reduction were not presented.
Only 1.6% of EV sales in Australia
According to a report released by the Electric Vehicle Council in August, electric vehicle sales in Australia in 8 were 2020 units, accounting for 6900% of the total vehicle market. 0.7% of EV sales are battery electric vehicles (BEVs) and 76% are plug-in hybrid electric vehicles (PHEVs). In the first half of 24, 2021 units were sold, accounting for about 8688% of the total Australian car sales market, and growth is still slow.
Number and proportion of electric vehicle sales in Australia
(Unit: Large, %)
As of 2020, the proportion of EV sales in the global market is 4.2%. In particular, Norway was found to have the highest proportion of electric vehicles in the world, accounting for about 75%. Australia lags behind the UK (10.7%), Europe (10.2%), China (6.2%), Korea and the United States (2.3%). According to the Climate Council, for Australia to reach its carbon-neutral target of 2035, 2030% of all vehicles must be electric by 75.
Global electric vehicle sales share in 2020
According to a survey by the Australian Electric Vehicle Council, between 2018 and now, half of Australians said they were considering buying an electric vehicle. This demand for electric vehicles has led to the purchase of hybrid vehicles with both gasoline engines and electric motors, with hybrid vehicles more than doubled in sales in 2020 compared to the previous year. Experts analyzed that as Australia has the world's largest percentage of roof-mounted solar installations per capita, Australians are interested in reducing carbon emissions, and those investing in solar power are more likely to purchase electric vehicles. However, by 2020, EV sales in Australia accounted for less than 1%, the lowest among developed countries.
Why is the Australian electric vehicle market not growing?
1) Loose environmental regulations and uncooperative policies of the government
The biggest reason global automakers are reluctant to enter the Australian electric vehicle market or launch various models is the Australian government's lax environmental standards. The number of EV models on sale in Australia is significantly lower than in the UK and European countries. Volkswagen, one of the world's largest electric car makers, sold 2020 vehicles in countries around the world in 21, but Australia is not included. In addition, the ID.2000 model, which recorded the highest sales of electric vehicles in Europe in 2020, is not planned to be released in Australia until 3. According to the Volkswagen Group in Australia, Europe imposes huge fines for exceeding carbon dioxide emission targets, so selling EVs at the corporate level is a commercial advantage. There is still no incentive from the federal government to lower the price of electric vehicles that consumers are paying for.
2) Lack of EV models in the Australian market
Currently, there are a total of 12 models of electric vehicles (passenger vehicles) sold in Australia from 31 companies. After 2020, six additional electric vehicles under A$6 have been launched, bringing the total number of low-end models to 5000. Automakers continue to supply plug-in hybrid models for SUVs, which Australian consumers prefer rather than battery electric vehicles. More automakers are expected to enter the Australian market in the future, with 6 new vehicles launched by 14, bringing a total of 2022 EV models to market, but this is still a low number compared to other countries such as the UK, which already have more than 27 EV models. .
List of low-cost electric car models in Australia
It is said that Australians are willing to purchase an electric vehicle at a premium of 10% more than a standard vehicle of the same class. However, the number of models available to local consumers is relatively small, and as a result, the supply of electric vehicles at reasonable prices is insufficient. Tesla vehicles account for half of all electric vehicles sold in Australia in 2020, with prices ranging from AUD 7 to AUD 3000, which is on the high side. In the case of Hyundai Motor's Ioniq Electric Elite (BEV), which has price competitiveness compared to other models in the Australian market, the selling price was 14 Australian dollars, and 4000 units were sold in 4. More than 8970 units were sold.
3) Limitations of electric vehicle charging infrastructure operation
There are more than 1650 EV chargers installed in more than 3000 locations across Australia, of which 470 are DC fast chargers, available at 250 charging stations. Although government and private investments are being made, the low proportion of electric vehicles is acting as a major barrier to infrastructure investment. Currently, in Australia, one charger is installed for every 7.2 electric vehicles. From a commercial point of view, it can be said that an increase in electric vehicle sales is an essential element for the operation of a charging station business. If the utilization of charging stations is not high, it will be difficult for companies to continuously invest in infrastructure construction.
Changes in the state's electric vehicle policy to reduce carbon emissions
Although the federal government's policy direction is being criticized in the electric vehicle industry, starting with ACT, the capital of Australia in June, each state government is announcing various support measures to convert vehicles with a high proportion of greenhouse gas emissions to electric vehicles with zero carbon emissions. Electric vehicles include battery electric vehicles and plug-in hybrid electric vehicles, including hydrogen fuel cell electric vehicles, although they are yet to enter the market.
NSW
In NSW, through the Electric Vehicle Strategy, announcing a plan to increase the share of electric vehicles to 2031% by 53, investing 5 million Australian dollars to expand the supply of eco-friendly vehicles. From 9 September this month, the purchase of an electric car under A$1 will be exempted from vehicle stamp duty. In addition, individuals who purchase an electric vehicle valued at less than A$7 can apply for a rebate of A$8000.
VIC State
The VIC government announced the Zero Emission Vehicle Roadmap in May, and plans to support 5% of all new car sales by 2030 to be eco-friendly vehicles. A $50 rebate is available for purchases of electric vehicles worth less than A$6 million, up to 8740 units. It is also considering providing incentives for an additional 4000 electric vehicles.
ACT State
Vehicles account for the highest proportion of 60% of greenhouse gases generated in the ACT state. Accordingly, the provincial government has initiated an incentive policy for the first time in Australia to switch to electric and hydrogen vehicles, which are carbon-emission vehicles. If you buy an electric car for the first time, you can get stamp duty exemption and you don't have to pay registration fee for two years. It is also offering a $2 interest-free loan to purchase electric vehicles.
TAS State
The TAS government announced in June that it would help save about A$6 on the purchase of mid-size electric vehicles through a stamp duty exemption for electric vehicles over the next two years. To achieve the tourism industry's goal of carbon neutrality, car rental companies and tour bus operators will not pay vehicle registration tax for two years when purchasing electric vehicles, and the state government plans to convert 2% of its vehicles to electric vehicles by 2000.
NT State
Last July, the NT state government establishes an EV strategy and implementation plan for the transition to zero-emission vehicles. From 7, the car registration tax and stamp duty of A$2022 will be discounted for five years. It is also developing a funding program for the installation of charging stations in homes, businesses and public places.
Some state governments, which announced that they would introduce electric vehicle taxes according to the federal government's technology and infrastructure investment priority policy direction, are partially modifying their policies or applying both taxes and subsidies to reflect the voices of the industry. NSW has withdrawn its plan to impose an electric car tax and decided to provide subsidies for the purchase of electric cars. In the case of SA, the introduction of an electric vehicle road tax has been put on hold. On the other hand, VIC has been the first in Australia to begin imposing an EV road tax on July 7. A road traffic fee of 1 cents per 1 km is imposed, and a fee of 2.5 cents per 1 km is applied to plug-in hybrid electric vehicles. The VIC government has been criticized by the industry for simultaneously applying conflicting policies, such as announcing plans to provide purchase incentives for 2 electric vehicles along with imposing taxes.
Korea expects to enter the hydrogen fuel cell electric vehicle market
In Australia, Hyundai Nexo and Toyota Mirai are working to expand the hydrogen fuel cell electric vehicle market. Currently, there are a total of three hydrogen vehicle charging stations (Melbourne, Brisbane, Canberra), and in April, Hyundai Motor Company obtained Australian sales certification for the Nexo equipped with a next-generation fuel cell developed with its own technology. The Nexo can drive up to 3 km with a 4-3 minute charge, and in Australia, it set a new record for operating the world's longest distance hydrogen car on a single charge.
In addition, for the development of the hydrogen and low-carbon industry, a hydrogen truck for logistics transportation and a public sector bus operation project have been launched, with ARENA as a major investor and support of 400 million Australian dollars. In May 2020, the Global H5OzBus Project, which was led by ITM Power and signed a consortium MoU with Transit Systems, Ballard Power Systems, BOC Limited, and Palisade Investment Partners, will conduct pilot operation and evaluation of 2 hydrogen fuel cell electric buses in bus systems in 10 regions of Australia. In particular, hydrogen fuel cells are attracting attention as a solution that can replace heavy electric batteries used in the heavy industry and transportation industry, and research for hydrogen fuel cell production is being actively promoted by government agencies, companies, and universities.
Strategic Partnership Manager at Deakin University said in an interview with KOTRA Melbourne Trade Office that Australia is looking for solutions to reduce the carbon generated by transportation and transportation. In particular, general passenger cars can be replaced by electric vehicles, but large trucks, buses, and trams are difficult to develop as electric vehicles, so hydrogen fuel cells are promising in this field. suggested that
Implications and Prospects
Australia's green mobility economy continues to grow. To be carbon-neutral, the federal government is investing large sums of money in new technologies and infrastructure, and states are starting to provide incentives to boost EV sales. As Hyundai Motor shows high recognition and market share in the Australian electric and hydrogen car market, it is expected that related domestic companies will enter the market. Hyundai Kona ranks second in Australia's electric vehicle sales ranking after Tesla Model 3, Nissan Leaf ranks third, and Hyundai Ioniq ranks fourth.
In addition, the SUV model of Hyundai's hydrogen car Nexo entered the local market by acquiring the first hydrogen car sales approval in Australia and establishing a hydrogen charging station. The hydrogen team leader of CEFC, the Clean Energy Finance Corporation, which has established an Advancing Hydrogen Fund worth A$3 million in Australia and is investing in hydrogen-related projects, manufactures or assembles hydrogen electric vehicles using Korean fuel cells and parts in Australia at a meeting with the Melbourne Trade Office. He said that he thought that the investment value would be high if he did. Accordingly, related companies can consider advancing through partnerships such as M&A and JV, and Australia's first hydrogen car startup HX2 has announced a plan to import parts from abroad and assemble it at a local factory.
Australia has high growth potential as a demand for electric vehicles and hydrogen fuel cells such as passenger cars, commercial vehicles, buses, and trucks, and the government's infrastructure expansion projects are expected to continue to expand. From a long-term perspective, the eco-friendly mobility market is expanding, the need for related parts is increasing, and the demand for related equipment and materials is expected to rise due to the construction of charging stations.
Source: Department of Industry, Victorian Government, Electric Vehicle Council, Korean Embassy in Australia, KOTRA Melbourne Trade Office Interview and data synthesis