One in eight car buyers plan to go electric

New data from Roy Morgan has found 12.5% of Australians who expect to buy a new vehicle in the next four years plan to go electric.

Over the past four years, the number of people who plan to buy an electric vehicle (EV) has jumped 1,236.6%, from 41,000 to 548,000 people, according to Roy Morgan.

Tesla has been largely responsible for this growing interest in EVs.

Since 2018, there's been a 897.3% increase in the number of people who plan to buy a Tesla in the next four years. And of the 548,000 people who intend to buy an EV in the next four years, 369,000 intend to choose a Tesla.

That said, Australians are showing growing interest in other EV brands. While 67.3% of future EV buyers plan to choose a Tesla, that's fallen from 90.9% in 2020.

There's also been a change in the gender breakdown of EV enthusiasts. In 2020, 76% of people who planned to buy an EV were men and 24% women; now, it's 61% and 39%.

Tesla has moved from fringe player to market force

Roy Morgan CEO Michele Levine said Tesla had surged from being the 16th-highest-selling brand in Australia in 2022 to the sixth-highest in 2023 so far.

“Tesla is clearly the dominant force in the electric vehicle market but as the intention to purchase data shows – there is an increasing gap opening up between those who want to buy an electric vehicle and those who intend to purchase a Tesla,” she said.

“This gap, which didn’t exist three years ago, shows that as other manufacturers such as BMW, Mercedes, Volvo, BYD and MG launch competing electric vehicle brands, there is an increasing market for these vehicles to tap into.”

Some lenders offer rate discounts for EVs

In recent times, some lenders have started charging lower interest rates for EV loans compared to standard car loans. This is part of a larger shift among lenders to showcase their green credentials.

If you want to buy an EV, I can help you finance the purchase by comparing loans from a range of lenders.

My strong recommendation is to organise your finance before you start searching for a vehicle so you know how much you can spend and can budget for the repayments.