SYDNEY – Australia is bucking the global trend of sharply increasing demand for electric vehicles, with sales of Teslas and other models sluggish despite the country playing an important role in the global supply chain.

Only 7,000 electric vehicles were sold in the country in 2020, an increase of about 250, or under 4% over the previous year, according to figures from the country’s Electric Vehicle Council, which represents the industry. That compares to a 43% jump in electric vehicles (global sales to 3.2 million even as overall car sales fell by a fifth.

EVs make up 4.2%, or 134,400, of all cars sold worldwide. In Australia, they only account for 0.7% of the 1 million cars sold each year, making them one of the slowest users of clean car technology.

Resource-rich Australia is a major mineral battery supplier to the electric vehicle segment. But the economy also relies heavily on fossil fuels – something EV proponents say is holding back the sector more.

Industry experts blame the absence of a clear policy to promote EVs, with the country’s conservative government seen as a major proponent of coal.

“Because we have a backward national climate change policy, and a reluctance to acknowledge the urgency of climate change, our national transport sector policies are ludicrous. Really, this is a sluggish policy on electric vehicles,” said James Perst, lecturer in environmental and energy law at Australian National. University.

A national EV policy was recommended by the Australian Parliament in January 2019, but nothing has changed. A trimmed discussion paper on a ‘future fuel strategy’ was released in February but ignored previous expert recommendations and ruled out financial incentives from the federal government to help motorists switch to electric cars. The paper also doesn’t suggest clear targets for new EV sales.

“In essence, the entire series of policies and economic incentives that can be directed to encourage people to choose electric vehicles has not been involved by the central government,” added Perst.

Proponents of the action are looking to countries such as Norway, which last year became the first country where sales of electric vehicles surpassed petrol and diesel engines. Buyers of electric vehicles receive various incentives such as free import tax, exemption from sales tax, and free use of toll roads.

The Scandinavian nation’s most popular electric car – the Audi e-tron Volkswagen – sold for $ 92,000 Australian dollars and sold more than 9,000 units last year.

In contrast, only 64 e-tron vehicles were sold in Australia, where the model sold for nearly AU $ 150,000, largely due to import duties, luxury car taxes and no financial subsidies for buyers.

Behyad Jafari, chief executive of the Electric Vehicle Council, said the lack of buyer incentives and fuel efficiency standards in Australia had made it difficult for carmakers. “New technology carries a premium price and because there are no incentives, it is difficult for customers to cope with high ticket prices,” he said.

Global carmakers often try new models in difficult conditions in Australia’s vast outback, but only offer about 28 electric car models in the country, only two of which sell for under AU $ 50,000. By comparison, more than 100 models are available in the UK alone.

Consumer ignorance of electric cars, coupled with relatively higher prices and a limited charging infrastructure has contributed to the launch of fully electric vehicles in Australia. The country has more than 2,300 EV charging points, but only 357 of them can be quickly charged – capable of recharging a vehicle’s battery in less than two hours. By comparison, the US state of California alone has about 22,000 fill points.

Some consumers are reluctant to buy EVs, believing they will need a supercharger in their garage when all they really need is a regular power point, says ANU’s Perst.

Industry says Australia needs to set a realistic time frame for phasing out petrol and diesel powered vehicles.

According to official estimates, only about a quarter of all vehicles sold in Australia will be electrified by 2030. However, that goes against the Australian state’s target of achieving net zero emissions by 2050. The Jafari EV Council points out that all new vehicles will need to be electric. between 2030 and 2035 to reach that target.

Advocates of more EVs see reason for optimism in Australia’s growing demand for new hybrid vehicles, which combine electric motors with gasoline or diesel powered engines. Sales swelled to around 60,000 units in 2020, up 50% from last year. Some in the industry see this as an indication that there is latent demand among Australian buyers for greener vehicles.

The country is also seeing a small but fast growing market for used electric cars from Japan, prompting state and local governments to fill some policy gaps.

Most states now include some level of EV planning. They set targets for electrification of their own public vehicle fleet and provide funds for replenishing infrastructure. But standards vary widely.

For example, the Australian Capital Territory waives stamp duty and registration fees and provides an AU $ 15,000 interest-free loan for the purchase of an electric vehicle. Greater New South Wales does not provide any financial incentives while Victoria and South Australia have some discounted prices but also require electric vehicle owners to pay road user fees.

For automakers, having a consistent policy or transition strategy across the country is important.

“Regardless of what the state or federal government does, vehicles will arrive in the coming years because of consumer choice,” said Scott Nargar, who works on government relations for the Australian arm of South Korean carmaker Hyundai. “We have to make sure the transition goes smoothly by ensuring we have the infrastructure in Australia.”