Australia's Road to Electrification

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Australia sees a surge in electric vehicle sales and charging infrastructure growth, offering new opportunities...

In 2023, the land of sunburnt plains witnessed over one million sales of conventional petrol and diesel vehicles, a significant figure but one that is increasingly overshadowed by the burgeoning popularity of electric vehicles (EVs).

With a record-breaking 87,217 EV units rolling out onto the streets, Australia's embrace of electric mobility marks a staggering 161% increase from the previous year, adding almost 54,000 more EVs to the roads compared to 2022. This electrifying shift accounts for 7.2% of the total 1.217 million new vehicles sold last year, an all-time high across all vehicle types.

If this growth rate continues, and there is no reason that it won’t (EV sales have doubled every year for the past 7 years) – Electric Vehicles will be the majority of new car sales by the end of 2026. There are already 91 electric car, van and ute models on sale in Australia. While prices are now close to parity with ICE cars. The BYD starts at $38,000 with a range of 480km per charge. EVs are no longer the bastion of the city dwelling rich.

The good news is that Australia also saw a substantial increase in its EV charging infrastructure. This is a significant opportunity for electrical contractors. It is very rare in any industry to have growth rates this strong, for this long. Our personal views of EVs v Internal Combustion Engine cars are not nearly as important as leveraging an inevitable shift is for our industry.
   

A Surge in Charging Sites:
 

One of the most notable developments in 2023 was the explosive growth in EV charging sites across Australia. The number of charging locations surged by a striking 90%, a clear response to the escalating demand for electric vehicles. This expansion is a crucial step in addressing one of the most significant concerns for motorists contemplating an EV purchase: the availability of public charging stations.

Chargefox emerged as a leading player in this burgeoning market, operating more than one-third of all charging sites in Australia. Close competitors included Evie Networks, holding 23% of the market, and Tesla, with a 10% share. Other notable providers like Jolt, NRMA, BP, and Ampol also contributed significantly to the expanding network.

The growth in charging infrastructure wasn't just in numbers; it was also in capacity. The total number of charging points across Australia grew by 83%, and more impressively, the charging capacity saw a 93% increase in 2023. By the end of the year, the country had added 397 car-charging sites and 755 new charging points.

The total number of EV chargers in Australia currently sits at under 5000. And while EV charging infrastructure is growing, it’s lagging behind the rates of EV adoption. The Electric Vehicle council says we’ll eventually need at least 10 million chargers for a national fleet of 21 million cars. While McKinsey says we’ll require 2.8 million by 2030. In short, we are not even at 1% of what we’ll need.

This translates into an economic opportunity of $5.6 billion in the next 7 years. And the electrical trade will be a major beneficiary.

"Do you want fries with that?"

McDonalds famously adds 15-40% extra revenue by asking customers if they want fries, meal deal or upsize. Smart contractors ought to do the same with EV chargers on every install. Especially given it is now a key feature in shopping centres, holiday accommodation, city parking, parking lots, apartment developments and even selling houses. ‘Do you want an EV charger installed’?

The Future is now.

Most of the concerns drivers have had with EVs are now evaporating. Purchase price, performance and range anxiety are historical relics as the market for EVs matures. Now it’s time for our industry to grab this opportunity and leverage inevitability.

Written by Steve Sammartino