Powering Australia towards a sustainable future

Affordability: tuning into market dynamics

In the evolving EV landscape, affordability is transitioning from a challenge to a competitive advantage. As we stay attuned to market trends, we’re witnessing a promising shift wherein competitive pricing strategies are driving down the entry point for BEVs, making them progressively more attainable.

When we take into account the total cost of ownership, which includes maintenance, fuel costs, and potential resale value, EVs become an increasingly attractive proposition.

On a national level, the Australian government has introduced measures such as the Electric Car Discount Bill, which includes removal of fringe benefits tax for new battery electric and plug-in hybrid vehicles priced below $89,332.

Availability and Infrastructure bottleneck

Limited model availability is another hurdle we must overcome. The more diverse and appealing the range of EVs on offer, the more likely Australians are to make the switch. Model choice and supply have improved significantly in the past 12 to 24 months with new brands and models entering the market, but the automotive industry must rise to this challenge and provide a variety of models to suit all needs.

At BMW, we are doing just that. Next year we will have six fully electric vehicles priced below the luxury car tax and fringe benefits tax threshold for fuel-efficient vehicles on the market.

Three have already been launched this year, and when we introduce the other three in 2024, we will offer 15 fully electric variants across seven models across our line-up. This is the most of any manufacturer represented in Australia.

The challenge of charging infrastructure is a third area which needs our concerted attention. Australia requires a comprehensive network of charging stations – a necessary step to ensure the convenience and feasibility of EVs.

As of June 2023, there has been a 57 per cent increase in the number of high-power public charging stations across the country compared to the previous year. But we must do more to ensure that potential EV buyers can charge their vehicles easily and conveniently, no matter where they live or work.

Policy and the road ahead

Government policies and regulations play a pivotal role in shaping the EV adoption rate in Australia. The national fuel efficiency standard (FES), due for imminent introduction, mandates the introduction of the latest and most efficient vehicles due to strict guidelines on what vehicles can be introduced to the market.

This will broaden the choice of low emissions vehicle options for consumers and will equip the country better to meet milestone greenhouse emissions reduction targets in 2030 and carbon neutrality by 2050.

To accelerate the adoption of EVs in Australia, we envision strategies that increase subsidies and commit to charging infrastructure investment.

There should also be consideration given to removing or scaling back the luxury car tax for all fuel-efficient vehicles, and not just those priced below the $89,332 threshold. This will enable a wider range of vehicles to benefit from incentives, promote the take-up rate of zero and low emission vehicles to a broader set of customers, and incentivise organisations to procure a wider range of electrified vehicles for their staff.

Sustainable mobility

The BMW Group puts sustainability at the core of its strategic direction. And true sustainability is only achieved through a holistic approach along the entire value chain.

Electromobility is a key aspect of this, and the BMW Group is focused on promoting EV adoption across the world and here in Australia. We have developed a strategy to significantly broaden our EV offering by providing a diverse selection of competitively priced, fully electric vehicles to our customers.

We anticipate that by next year, at least one in five of our company’s new vehicles will have a fully electric drivetrain. By 2025, it should be one in four, and by 2026, one in three. Our aim is to have more than two million fully electric vehicles on the road by the end of 2025.

It is clear the road to an EV future in Australia is a challenging one. But with the collective commitment of the automobile industry, government, and the Australian public, we are optimistic about the progress ahead.

Wolfgang Buechel is CEO of BMW Group Australia