EV Transition Faces Insurance, Infrastructure Challenges
Soaring insurance premiums, charging infrastructure limitations, and a shortage of skilled mechanics are posing significant challenges for Australians transitioning to electric vehicles (EVs), witnesses told a parliamentary inquiry on Friday.
Christopher Jones, national president of the Australian Electric Vehicle Association, highlighted rising insurance costs as a deterrent. He stated that insurers are “opting for write-offs rather than repairs” due to limited access to spare parts and a shortage of qualified mechanics. Jones also pointed to the need to create a more welcoming environment through advocating for a “right to charge” for all EV owners to combat bans on charging EVs in apartment car parks.
The inaugural public hearing, held in Canberra, also revealed concerns about the development of a second-hand EV market. Many EVs are failing to sell at auction because of the lack of battery health certification, which deters potential buyers.
Stuart Charity, chief executive of the Australian Automotive Aftermarket Association, said that governments were focusing on the price and supply of new vehicles, neglecting the crucial aspects of servicing and repairs. He reported that while 14% of workshops are already EV-ready with a quarter planning to be ready in the next 12 months the cost and lack of both training and trainers is a significant barrier, particularly in regional and rural areas.
“To achieve continued buy-in from the Australian public … government must ensure that the infrastructure is in place and that people who buy EVs have a good experience and that their first EV is not their last,” Charity stated.
Samuel Marks, head of policy at the National Road Transport Association, spoke about the trucking industry, saying that electric vehicles would contribute to decarbonizing freight. Yet, he pointed out significant cost barriers, with electric trucks costing two to three times more to operate than conventional vehicles, and with charging infrastructure largely missing.
Marks said the government should consider financial aid to encourage adoption, include hydrogen fuel-cell trucks in any subsidies, and create a national strategy for refueling infrastructure: “There is a big chicken and egg problem … people don’t want to provide the charging infrastructure because there are no trucks on the road and people don’t want to buy the trucks because they can’t charge.”
Marks noted the need for a greater number of skilled mechanics to service future trucks, especially in regional areas, similar to the need for mechanics for cars and utes. He also emphasized the importance of hydrogen, which, although less efficient than electric, can carry more weight and potentially offer a greater range. The major challenge with hydrogen is the cost of production, despite subsidies announced in the recent budget.
Legal hurdles related to larger low-emission trucks operating on the road also cause concern, with differences emerging across various states.
