Kia says Australian electric vehicle sales are accelerating faster than the industry expected
According to one of Australia’s biggest automotive brands, electric vehicle sales will match traditional combustion vehicle sales by 2030.
“The reality is that EV sales are happening far quicker than everyone thought. I think probably by the end of this decade, we’d be pretty close to 50 per cent,” he said.
Meredith clarified that he was not just talking about Kia, whose aggressive EV product assault dubbed ‘Plan S’ was outlined in late 2020, but the entire Australian new-vehicle market.
Last year just over 5000 EVs were sold in Australia, accounting for about 1.9 per cent of the total new-vehicle market, but the figure was almost 200 per cent up on 2020.
But Meredith said a combination of consumer demand, legislation and corporate policy will rapidly boost EV sales, as more car-makers – including many from China – enter the Australian market with EVs, more mainstream brands import more affordable new EVs and more jurisdictions offer more EV incentives on the way to the federal government’s commitment to net zero CO2 emissions by 2050.
Indeed, local EV demand is already strong, with limited supplies of both the Kia EV6 and its Hyundai sibling, the IONIQ5, both attracting waiting lists well into 2023 – despite the fact they both cost around the same as a mid-size German luxury SUV.
“It’ll be pushed by legislation, by the corporate decisions whether made globally by manufacturers as they move to EV production rather than ICE [internal combustion engine] production. It’s happening and it’s happening quickly,” said Meredith.
“I feel that with what’s happening from a research and development point of view, and from an operational direction in Korea with us, the emphasis is definitely on EVs. And we’re not the only ones.”
Kia’s Australian chief pointed out the significance of Toyota entering the EV arena, as it will finally do within about 12 months with the BZ4X electric crossover, as part of a near-$100 billion electric car product push resulting in more than 30 new EVs hitting showrooms by the end of this decade.
“The resources that Toyota has got, for starters, is significant. And it’s the global legislation that’s occurring that’s speeding things up. It’s caught everyone by surprise how quickly this is happening,” he added.
“Talk to anyone today and you’ll see that customers are considering EVs. We know where the future is.”
Meredith said that while the cost of new cars continues to rise in a semiconductor-scarce environment, EVs will become cheaper not more expensive due to competition.
“I think what will happen is there’ll be a bit of downward pressure… there’ll be a lot more car manufacturers coming to play in Australia,” he observed.
But Meredith said making EVs artificially cheaper via government rebates – as seen in the US, Norway and now many states in Australia – is not sustainable. Rather, he said money would be better spent on recharging infrastructure.
EV infrastructure predominantly revolves around regular and fast-charging stations, which are now being widely deployed in both urban areas around shopping centres for example, but also in regional areas to enable longer-distance road travel.
“I would be far, far, far more comfortable if certain rebates, if that money was put into infrastructure. If there’s a bucket of money available, which obviously there is, that bucket of money should be put into infrastructure.
“I get why they’ve done it, but when you’ve got an IT specialist living in Mosman, I’m not quite sure they should get a $3000 discount when some person living in the western suburbs might utilise that $3000 better.
“I would much prefer a national strategy,” said Meredith. “I’ve been against EV rebates. It’s not sustainable.”
Kia’s outspoken local chief said the brand will sell around 70,000 vehicles this year, which would likely make it Australia’s fourth most popular car brand in 2022.
From humble ‘cheap and cheerful’ beginnings, Kia is now embarking on a new EV journey and Meredith said there’s never been a more significant opportunity for change, for both car-makers and governments.
In particular he urged the national adoption of the type of tax reforms now taking place in some states, where distance-based road user taxes for EVs are being expanded to all motorists, which could eventually replace state registration and stamp duty fees as well as federal fuel excuse, GST and even LCT.
“That [EV road tax] comes into play in now in Victoria and South Australia. But we’ve got 25 million people in Australia and shouldn’t we have a uniform approach?,” said Meredith.
“If fuel demand goes down, they’ll have to look at some way to make up for the lack of excise. But I really don’t know the answer.
“It’s an interesting time. It gives government an opportunity with what’s occurring to really re-evaluate everything in regards to taxation. Hopefully the next federal government has the courage to really look at these things and say OK this is happening, then change things to the betterment of the country.”
Keyword: EVs to account half of all new-car sales by 2030: Kia