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Research from NRMA Insurance shows that driving familiarity with electric vehicles (EVs) could be the game-changer needed to speed up their adoption. The study shows that as Australians become more informed about EVs, their likelihood of considering them for their next car purchase skyrockets, paving the way for a more rapid shift towards EVs. The report, , produced by market research company Ipsos, shows that only 20 per cent of Australians planning to buy a vehicle in the next five years are considering an EV, but that number increases to 32 per cent among those who are already familiar with them.
It also highlights a growing interest in EVs. Currently, only 26 per cent of Australians feel knowledgeable about EVs, but nearly half (47 per cent) are eager to learn more. For Australians not considering an electric vehicle for their next car, among their primary concerns are driving range (54 per cent) and charging times (53 per cent).
Despite most Australians driving less than 50 kilometres a day — easily within the range of many EVs — there is still significant unease about long-distance travel and charging infrastructure. Additionally, 44 per cent of non-considerers cite worries about battery fires, even though research shows road-registered EVs do not present a greater risk of fire than internal combustion vehicles. NRMA Insurance CEO Julie Batch says the report highlights the work needed to bust the myths about range anxiety, safety and cost.
She also recommends increased support for the second-hand EV market and the introduction of standardised battery testing as key steps to help boost consumer confidence around EVs. “The good news is that more affordable models are now becoming available. This expansion will boost the used-car market and make EVs more accessible to a broader audience.
The research shows that 58 per cent of Australians interested in EVs are open to buying a used car, so this will be a practical option for many drivers,” she says. The report indicates that while current EV owners are confident in their cars’ sustainability and cost savings, many Australians remain sceptical. Only 30 per cent view EVs as the most cost-effective option, and just 42 per cent see them as the most environmentally conscious choice.
High cost is another barrier, with only a handful of models under $40,000 and a limited second-hand market making EVs less accessible for budget-conscious buyers. Despite the higher initial purchase price, many consumers are unaware that lower running and maintenance costs make EVs more cost-effective over their lifetime. An average car driving 13,700 kilometres per year could save $1000 annually in fuel, or $1200 with overnight off-peak charging.
As battery technology improves and production scales, upfront costs are expected to decrease, making EVs more competitive. The report also illustrates the rapid growth of EVs in Australia and predicts that future expansion will likely be driven by younger drivers. EVs, which made up less than 1 per cent of new-car sales in 2020, have consistently increased their market share annually, reaching 8 per cent of light-vehicle sales in 2024.
Unsurprisingly, the surge in EV adoption is most pronounced among drivers with household incomes of over $200,000, families with children and residents of capital cities, with many citing lower running costs and sustainability as key reasons for their purchase. “To capitalise on this momentum, we need policies and incentives to support the second-hand EV market, which will help make these vehicles more accessible, especially among some buyers who may be deterred by the upfront cost of a new EV,” says Batch of the growth figures..
