Electric vehicle sales in Australia hit new high in May

Electric Vehicle Council chief executive Julie Delvecchio says continued investment in charging infrastructure is critical to keep up with consumer demand for EVs. (ABC News: Lachlan Bennett) One in five new vehicles sold in Australia in May was an EV, a monthly sale record. EVs, along with hybrids and plug-in hybrids, accounted for nearly half of all vehicles sold last month. Experts say the war in Iran and petrol price surge helped spur on some consumers but a broader market change is well underway. Link copiedShareShare articleDemand for electric vehicles is soaring to new heights in Australia, with EVs representing one in five of all new vehicles sold in May. Fuel security concerns are also pushing consumers away from petrochemical power, with 46 per cent of all new vehicles sold last month being either an EV, hybrid or plug-in hybrid. Even Australia's most popular vehicle class, the gas-guzzling SUV, is embracing lower-emissions technology, as sales of petrol and diesel SUVs dropped by 31 per cent and 41 per cent respectively, while plug-in hybrid sales soared 377 per cent. Chief executive of the Federal Chamber of Automotive Industries Tony Weber said "consumer preferences are changing rapidly" in the SUV segment. "As the number of EVs on the road continues to grow, charging infrastructure must become more of a priority," he said. Rising sales of EVs are being driven, in-part, by an influx of cheaper cars from Chinese companies like BYD, which has been able to dominate the market thanks to strong state subsidies, technological development and control of the supply chain. BYD's ship docked in Australia for the first time this week. (ABC News: Lachlan Bennett) Almost 5,000 of its vehicles arrived in Melbourne this week, the first shipment of almost 30,000 vehicles BYD will send to Australia in the coming months. Most cars in the first shipment were sold after the war in Iran started, according to chief operating officer Stephen Collins. "There's no doubt that in March, when the war broke out in the Middle East, there was a significant surge for EVs," Mr Collins said. "The market's settled back down now but certainly there was strong demand." BYD will ship 30,000 vehicles to Australia in coming months. (ABC News: Lachlan Bennett) BYD says it has sold 120,000 vehicles, both electric and petrol-powered, since launching in Australia in 2022 and has more than 100 dealerships in its network. But, like other Chinese companies, BYD has been treated with suspicion by consumers and politicians alike due to persistent cyber-security fears related to the technology built into its vehicles. Professor Marina Zhang from the Australia-China Relations Institute at the University of Technology in Sydney, said there were "genuine cybersecurity and data-governance issues" related to smart vehicles, however, "these are not unique to Chinese brands". "The real policy question is how Australia regulates data storage, software access, telematics, procurement standards and auditability across all connected vehicles," Dr Zhang said. "Chinese-made cars attract extra scrutiny because of geopolitical distrust, but a serious response should avoid broad nationalist suspicion." The technology used in some Chinese cars has raised concerns at the highest levels in Australia. (ABC News: Lachlan Bennett) Australia's spy agency even warned politicians last month not to have sensitive conservations in any type of vehicle. The closure of the Strait of Hormuz and subsequent spike in oil prices helped push consumers towards electric vehicles in recent months. But fuel prices have since dropped significantly thanks to cuts to Australia's fuel tax, the release of strategic reserves and a pivot away from Middle Eastern supplies. Ms Zhang said the price drops "may weaken the immediate consumer urgency" but would not change the structural trend. A lack of charging infrastructure across the country is often cited as a barrier to the transition to electric vehicles. But soon, EV charging could be as simple as finding a car park. "That shock reminded consumers and policymakers that Australia's transport system remains exposed to imported fuel, shipping choke points and geopolitical crises," she said. "EV demand may fluctuate month to month, but the energy-security logic has become clearer." Chief executive of the Electric Vehicle Council, Julie Delvecchio, said BYD's delivery of EVs demonstrated "just how much things are changing in Australia" and called for continued investment in charging infrastructure. "That's going to require a significant focus from the federal government and also at a state level," Ms Delvecchio said. While newer EV companies like BYD are increasing sales in Australia, they trail far behind Australia's favourite car brand, Toyota. Toyota sells at least twice as many vehicles than every other car brand and has topped Australian sales every year for more than two decades. But the company, like oth

Electric vehicle sales in Australia hit new high in May

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