...there are two implications from this:
1. As EV sales continue to underperform relative to hybrids, car makers would opt to introduce less EV models into Australia
2. Slower EV sales derails Charging Infra plans (see earlier post) which further instils less confidence for EV adoption
As a market, Australia is not material as far as EV/Lithium is concerned, but it does play into the psyche of legacy car makers vindicated by their decision to defer further EV rollouts as earlier planned. This plays into the hands of aggressive Chinese EV makers, further consolidating their global market share over time. Like it or not, bulk of the lithium you sell from the lithium miner you own will be needed by the Chinese companies. Battery EV sales slump as cautious buyers opt for hybrids Simon EvansSenior reporter
Aug 5, 2024 – 2.07pm
Sales of full-battery electric vehicles in Australia are slowing in line with global trends as many buyers opt for hybrid vehicles instead.
Question marks about the future values of EVs in the second-hand market, a sluggish rollout of public charging infrastructure and the relatively high cost of EVs in a cost-of-living crisis have contributed to the slowdown.
The Toyota RAV4 was the top-selling vehicle in Australia in July, with many of those models the hybrid version. Hybrids are winning over more buyers, compared with full-battery EVs.
New figures from the Federal Chamber of Automotive Industries (FCAI) on Monday show sales of hybrid vehicles – which typically have both an internal combustion engine and a modest-range battery and electric motor – jumped 88.4 per cent in July compared with the same month a year ago.
Full-battery EVs made up 6.6 per cent of total new vehicle sales in July, slightly down from 7 per cent in July 2023.
The Toyota RAV4 has climbed to be the No.1 vehicle in Australia in July with sales of 5933, with most of those sold being the hybrid version. It outstripped the two big-selling ute brands, Ford Ranger with 4915 sales and Toyota HiLux with 4747.
FCAI chief executive Tony Weber said Australia was exhibiting similar trends to many other countries where full-battery EV sales had been slowing.
“Consistent with trends in many overseas markets, sales of hybrid vehicles are up 88.4 per cent and plug-in hybrids are up 128.9 per cent compared with July 2023,” Mr Weber said.
Electric car brands Tesla and Volvo-offshoot Polestar had a falling-out with the FCAI in March as arguments raged over the federal government’s national emissions standards legislation.
Both Tesla and Polestar now report monthly sales figures via the Electric Vehicle Council, and their figures for July showed double-digit declines compared with the same month in 2023.
Tesla reported that for the first seven months ended July 31 it had sold 25,708 vehicles in Australia, down 12.9 per cent compared with the first seven months of 2023. Polestar has sold 1053 vehicles for the first seven months of 2024, down 27.3 per cent.
The FCAI figures on Monday showed that when the Tesla and Polestar numbers were stripped out of the July overall vehicle sales, the market was up 2.7 per cent to 99,486 vehicles sold. The Tesla and Polestar numbers were included, however, in the comparison of overall percentage of full-battery EVs of the entire vehicle market.
While vehicle deliveries improved in the past six months, this had come at the expense of profits as Tesla cut prices to compete against cheaper Chinese EVs and extended more generous financing to buyers. Tesla also cut about 10 per cent of its workforce.
