The transition to electric vehicles (EVs) in Australia is facing multiple challenges, a parliamentary inquiry has heard. Soaring insurance premiums are one of the significant hurdles, with insurers increasingly opting to write off damaged EVs rather than repair them due to limited access to spare parts and a shortage of qualified mechanics, according to Christopher Jones, national president of the Australian Electric Vehicle Association.
Jones highlighted that bans on charging electric vehicles in apartment car parks are another obstacle to widespread adoption. The association is advocating for a ‘right to charge’ for all EV owners. The lack of a developed second-hand market for EVs is also stalling their uptake, with many vehicles being passed in at auction due to uncertainty about battery health.
Stuart Charity, chief executive of the Australian Automotive Aftermarket Association, emphasized that governments are overlooking the importance of servicing and repairs for EVs. He noted that only 14% of workshops are currently EV-ready, although 24% plan to be ready within the next 12 months. The high cost of training and a lack of trainers are creating significant barriers, 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 said.
Samuel Marks, head of policy at the National Road Transport Association, discussed the challenges facing the trucking industry’s transition to low-emission vehicles. He noted that while electric trucks will play an important role in decarbonizing freight, they are currently two to three times more expensive to run than traditional trucks. Moreover, charging infrastructure for heavy vehicles is largely non-existent.
Marks suggested that the government should consider financial assistance to support the uptake of electric trucks, include hydrogen fuel-cell trucks in any subsidies, and develop a national strategy for refueling infrastructure. He also highlighted the need for skilled mechanics to service future trucks, particularly in regional areas.
The inquiry heard that legal barriers are also hindering the adoption of bigger low-emission trucks, with differences in regulations emerging across various states. The cost of producing hydrogen fuel has been a challenge for hydrogen fuel-cell vehicles, although recent budget subsidies are expected to help address this issue.
