Driver survey points to shift towards electric and hybrid cars
A new survey of Victorian drivers has found that more people would prefer to purchase a hybrid vehicle, over a petrol engined vehicle, for their next purchase, with a further third of drivers saying an all-electric vehicle would be their preferred choice.
The survey undertaken by toll road managers EastLink found that around 40 per cent of motorists would prefer to buy a hybrid vehicle as their next vehicle, beating out petrol vehicles which were the preferred choice of around 32 per cent of motorists.
The results highlight the substantial shift that appears likely to occur in the passenger vehicle market, with a substantial proportion of petrol-fueled vehicle owners indicating they are keen to switch to an electric alternative.
“The EastLink survey is the world’s largest annual tracking study of motorists’ attitudes to self driving and driver assistance technologies, vehicle connectivity, vehicle electrification and road use charging – technologies which are expected to converge in cars of the future,” EastLink corporate affairs manager Doug Spencer-Roy said.
The survey comes as the sale of new petrol and diesel cars continue to plummet, while sales of electric and hybrid cars surge (albeit off a low base).
These figures are being replicated in many European countries, but while EV sales in those countries are growing to be substantial, the suspicion is that in Australia the lack of choice and high prices of EVs means more people are deciding to delay any new car purchase until the landscape changes.
The Eastlink survey showed strong awareness of battery electric vehicles, with just under 90 per cent of respondents indicating that they were aware of the option, with a smaller portion (around 55 per cent) indicating awareness of hydrogen fuel cell vehicles.
Around a third of motorists said that an all-electric vehicle would be their preferred choice, but survey respondents cited purchase cost (72 per cent) and lack of charging facilities away from home (58 per cent) as the main barriers to making the switch to an all-electric vehicle.
Less than half of respondents (45 per cent) cited electric vehicle range as a barrier to purchasing an all-electric vehicle and less than a third of respondents said they thought it took too long to recharge an electric vehicle.
EastLink, which operates Victoria’s largest toll road network, undertakes an annual survey of Victorian drivers to measure driver preferences and what motorists are looking for in their next vehicle.
EastLink surveyed more than 22,000 Victorian motorists as part of the survey, which also found that 68 per cent of respondents want governments to provide additional incentives for purchasing electric vehicles.
Most respondents said that measures that would help lower the upfront cost of electric vehicles, and reductions in the price of annual vehicle registration, would help make it easier to make the switch to an electric vehicle.
Around half of respondents said they were able to park their vehicle in an off-street garage, with another third parking their vehicles in their driveway. These results reflected a preference of around two-thirds of respondents that said they would prefer to recharge an electric vehicle at home.
Around one-in-six respondents said that they would prefer to take their vehicle to a dedicated location where vehicle chargers have been provided.
Survey respondents that were looking further into the future for their next vehicle purchase were more likely to prefer an electric vehicle, indicating that many drivers are likely to have an understanding of the falling costs of electric vehicles and the growing network of recharging infrastructure.
The survey also found that drivers are becoming more enthusiastic about the use of driver assistance technologies, including collision warnings, lane departure warnings, cruise control and emergency braking technologies.
“This is because the latest driver assistance functions will reduce the likelihood of collisions, as well as reduce the severity of collisions,” Spencer-Roy said.
“These survey results support EastLink’s expectation that use of the latest driver assistance functions will become commonplace long before we see lots of fully autonomous vehicles on our roads.”
However, drivers were increasingly sceptical about the prospect of switching to a fully automated vehicle, indicating that many may require further assurances about the performance and safety of self-driving vehicles before making the switch.
Around a quarter of respondents said that they would like their next vehicle to by a fully self-driving vehicle, which EastLink noted was a decline from around 30 per cent preference measured in the 2017 survey with EastLink suggested that the ‘hype’ around driverless vehicles may have waned.
Electric car sales tripled last year. Here’s what we can do to keep them growing
A total of 6718 electric vehicles were sold in Australia in 2019.
That’s three times as many as in 2018, but it’s still small beer.
More than a million fossil-fueled light vehicles (including SUVs and utes) were sold in the same period.
The sales figures were published in the wake of UK Prime Minister Boris Johnson’s announcement that sales of petrol or diesel cars will be banned in the UK by 2035.
The UK isn’t the only Bright government to see the benefits of going electric — in 2016, New Zealand’s Conservative party introduced a wide-ranging program to encourage drivers to get off fossil fuels.
If Australia wants to head in the same direction, we can learn from what others have done.
Why should we go electric? And why don’t we?
The main argument for electric vehicles is often about cutting greenhouse gas emissions. But even leaving those aside, there are plenty of reasons to move away from oil as an energy source for transport, among them energy security, better health outcomes, and spending less money on petrol imports.
Australians have been slow to adopt electric cars, however. Our previous research indicates the top two reasons are the fear of not being able to find a fast recharger on long trips (“range anxiety”, and the higher purchase price of electric cars.
Obstacles are clearing
Range anxiety should be on the decline. Fast rechargers are beginning to be installed on major routes and higher capacity batteries are increasing vehicle range. In any case, the average distance travelled by Australians is just 34.5km per day.
Prices for electric vehicles are also on the way down. Bloomberg has predicted that larger electric and fossil-fueled cars will cost about the same in Europe as soon as 2022.
Even when upfront costs for electric vehicles are higher, ongoing costs are generally much lower. An average Australian car travels 12,600 kilometres in a year, consuming 1360.8 litres of fuel at a cost of about A$2,000 (assuming fuel costs $1.50 per litre).
For a typical electric car, the same amount of travel would cost $250 if recharging using off-peak electricity (assuming it costs 11 cents per kilowatt hour), or $567 if recharging with more expensive electricity (at 25 cents per kilowatt hour).
Lessons from New Zealand
In 2016, New Zealand’s Conservative transport minister Simon Bridges introduced a suite of policies to encourage electric, especially for passenger vehicles. Since then, electric vehicle sales have been doubling every 12 months.
In 2019, 6545 light electric vehicles were brought into New Zealand and registered for the first time. That’s not far off Australia’s tally, but in a population of 5 million compared to Australia’s 25 million.
So what did the Conservatives do to encourage motorists to go electric? They took advice from the experts and introduced a multi-faceted group of measures.
These included: exemption from the Road User Charge, worth about $600 per year; government procurement programs; installing a public recharging network; investment in a five-year promotional campaign including TV ads, online information and “ride and drive” events. They also established a leadership group across business and government and a funding scheme to encourage organisations to go electric.
In NZ they have just about thought of everything, even ensuring there is a facility to recycle old batteries.
But possibly the most important factor has been that the government has enabled imports of high-quality secondhand electric cars from Japan. In 2019 they accounted for more than half of electric vehicle sales (4155 used compared to 2390 new).
This measure enables motorists with lower budgets to buy electric vehicles.
Our unpublished research shows electric vehicles have been especially popular with multicar families who use their EVs as much as possible as it’s so much cheaper than using petrol or diesel. When those happy customers tell their friends and family about how much better it is to drive electric, it’s an important feedback loop that helps people overcome their fear of change.
Maybe it’s time Australia took a “Leaf” out of the Kiwi book and got on board with some sensible policies and legislation to speed up the transition to electric cars.
Gail Broadbent, PhD candidate Faculty of Science UNSW, UNSW and Graciela Metternicht, Professor of Environmental Geography, School of Biological Earth and Environmental Sciences, UNSW
Nissan Leaf again named cheapest electric car to own over 5 years
Nissan Leaf Plus. Source: Nissan
It’s a story we’ve told before, and it’s now that time of year to tell it again – the all-electric Nissan Leaf hatchback has been named the cheapest electric car to own over five years by US-based Kelley Blue Book.
It is the third year in a row that Nissan’s popular and pioneering electric car has received “5-Year Cost to Own” award.
It beat competitors including the 2020 Chevrolet Bolt and 2020 Hyundai Kona Electric based on ownership data on depreciation, expected energy costs, finance and insurance fees, maintenance and repair costs, as well as state registration fees.
“With a sleeker exterior shape that deserves a “most improved” prize, a modern interior that’s a pleasure to ride and drive in, and a pricing strategy that’s very competitive, the Nissan Leaf takes home our Best Electric Vehicle 5-Year Cost to Own Award for the third year in a row,” wrote Kelley Blue Book about the Leaf’s award.
Available in the US with either a 40kWh or 62kWh battery, the base model with 150 miles (241km) range costs from $US32,525 ($A48,724 converted).
According to Kelley Blue Book, five years of ownership in the US costs $US40,186 ($A60,201 converted), compared to the Bolt which offers up to 259 miles (416km) driving range and costs $US42,417 ($A63,543 converted) over five years and the Kona Electric with 258 miles (415km) driving range which costs $US44,910 ($A67,278) converted.
“Since we sold the first Nissan Leaf in late 2010, owners have been seeing the financial benefits of trading gas for electricity and significantly less routine maintenance offered by an EV,” said Aditya Jairaj, director of electric vehicle sales and marketing for Nissan North America in a statement.
“With a long list of standard safety enhancements for the new model year, we believe Leaf has become an even greater value for 2020.”
Still eligible for the $US7,500 ($A11,235) US federal tax credit means that drivers can buy the 40kWh Nissan Leaf for as little as $US25,025 ($US37,489 converted) – or, if more driving range is required the 62kWh Nissan Leaf Plus with up to 226 miles (363km) range is available from $US38,200 ($A57,226 converted), or $US30,700 ($A45,990 converted) once the tax credit is applied.
The 40kWh Nissan Leaf was introduced back into Australia for $49,990 before on roads after a long hiatus, and we have reached out to Nissan Australia to discover if there is yet any more news on 62kWh availability locally.
In the meantime, recent changes in grey import rules mean the longer range Leaf can be brought in as described in this article here.
All driving ranges mentioned above are based on the US-based EPA rating.
Shell to replace UK service station forecourt with EV charging hub
A fully operational Shell service station in Fulham, West London could soon be entirely replaced by electric vehicle chargers, making it the first to do so in the UK.
It’s another signal that the shift to electric vehicles is well underway, and follows hot on the heels of the UK announcement last week to bring forward a ban on new petrol and diesel car sales to 2035.
Similar changes are already underway in Norway and the US, where fuel pumps have been ripped out in favour of EV chargers in preparation for a transition to electric vehicles.
The EV-only hub, for which a planning application will be submitted by the end of February, will consist of 10 150kW DC fast chargers situated under solar panel canopies complete with flower beds.
“We’re looking at the next evolution and the needs of our customers in the broader sense,” Shell UK general retail manager Bernie Williamson was quoted as saying by Forecourt Trader.
“We’re doing nature-based solutions, giving motorists the opportunity to do something about their carbon footprint as we continue to invest and ramp up long-term solutions of electric vehicle charge posts for those people when they’re ready to move to EV transportation.
“We’re ideally placed for that – we have a fantastic network where over 75% of the population are within 15 minutes of a Shell service station.”
The announcement comes as Shell installed its 50th EV charger in the UK and the first 150kW charger at a service station.
The welcoming, eco-friendly environment will be complimented with a convenience with grass roof where drivers can spend some time relaxing while their electric vehicles “top up”
By the end of 2020, Shell plans to have installed a total of 70 charging sites with a view to as many as 200 by the end of 2021.
“We’re trying to look at customer demand, and trying to be slightly ahead of that demand.
There’s big demand in the cities, and then it will be the joining up of the cities,” said Williamson.
“In London our busiest site is in Holloway where we have two chargers, handling about 200 customer visits a month. We’ve started with 50kW posts, but are gradually moving to 150kW.
“Our charge posts are supplied by 100% renewable electricity – so by definition if you’re an EV driver and you’re charging up at Shell, you’re driving carbon neutral,” said Williamson.
Tesla Model 3 tops list of cars that hold their value
Model 3. Source: Tesla
High demand has gained the all-electric Tesla Model 3 top place in a list of vehicles – including internal combustion engine cars – in a new study analysing retention of value.
It’s more or less assumed by anyone buying a new car that as soon as it is driven off the lot you can immediately kiss a few thousand dollars goodbye in depreciated value.
For that reason it’s worth paying attention to factors like resale value when buying a new car, or whether you’ll get better value for money by buying new in the first place.
This is the premise of a new study from Iseecars, in which new and used sales data from 6 million vehicles in the US were used to compare the new cost of cars against their resale value one year on.
It’s an important metric to consider when looking at total cost of ownership, along with reduced “fuel” costs, and lower maintenance.
Tesla CEO Elon Musk, of course, has suggested that Tesla cars will increase in value, particularly those with Full Self Driving, because of the potential revenue opportunities of “robo-taxis.”
While the average car loses 10% value within the first month of ownership and 20% within the first 12 months according to Carfax, the Model 3 lost just a fraction of its value – a quarter of that of the average car in fact – within the first twelve months.
In the study, the Tesla Model 3 came out on top by a margin of almost 6%, ahead of utility truck favourite Ford Range, the Chevrolet Traverse and the popular Honda Civic hatchback.
Worth just 5.5% less, or $US2,529 ($A3,780) based on a vehicle costing just under $US46,000 ($A68,769 converted) after a year of ownership, the high resale value of the Model 3 ranks it a better buy on value alone than other high value holders.
Source: I See Cars
iSeeCars CEO Phong Ly says that the unprecedented demand for the Model 3 – for which Californian electric car maker Tesla received 325,000 pre-orders in its first week – has helped drive up resale value of the vehicle.
“The Tesla Model 3 had the highest number of preorders of any car ever produced, and its backlog of orders helped further drive the high demand for the vehicle,” says Ly.
Tesla struggled at first to supply that massive backlog of pre-orders, but although it has since reached its output capacity goal, Ly says that because people are so happy with their Model 3s there are also not many on the secondhand market – and hence those that do sell can ask a high price.
“The vehicle didn’t meet its production goals until July of 2018, and because it’s so new to the marketplace and because of high owner satisfaction there is a low inventory of used versions,” said Ly.
According to the Ly, this also means it could be a better choice to buy a new Model 3 than buying secondhand.
“Instead of buying a car that’s already been driven for one year, consumers can buy the new version of select vehicles with a purchase price of just a few thousand dollars more to avoid the uncertainties that come with purchasing a used vehicle,” said iSeeCars CEO Phong Ly in a statement.
“When spread out over the length of the average car loan at 5.5 years, the slightly higher monthly payment can be offset by the car warranty and dealer incentives such as rebates.”
, and the higher purchase price of electric cars.
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