A new national poll shows that plug-in hybrid vehicles (PHEVs) are acting as a stepping stone to driving pure electric, and that the Federal Government’s Fringe Benefits Tax (EV FBT) exemption is a key reason many Australians are choosing a PHEV.
The new research also indicates that importantly drivers are using their vehicles as electric first, and that once they experience a PHEV, they enjoy the advantages and say they are most likely to again select some kind of electric vehicle for their next car. Once Australians get into an electric car, they are very unlikely to turn back.
Commissioned by National Automotive Leasing and Salary Packaging Association (NALSPA), the JWS Research survey of more than 600 PHEV drivers found:
- Three in five (61%) nominated the FBT exemption as the top reason they leased a PHEV, and most (90%) said the associated savings were important in their decision
- Six in 10 (64%) would seriously consider a PHEV for their next car and more than one in two (56%) would seriously consider a battery electric vehicle (BEV)
- At the time of their lease decision, seven in ten (73%) were considering a petrol, diesel or standard hybrid vehicle. Now, less than half (48%) would consider these car types
- On average, PHEV drivers use electric power only for two-thirds (65%) of their trip
- Nine in ten (89%) recharge the battery at home at least twice a week, including nearly three in five (57%) who plug in every night
- As a result, six in ten (64%) of PHEV drivers are saving as much as $75 a week on fuel
- But right now, many surveyed wouldn’t buy a BEV, with about half saying the main reasons are the lack of public charging infrastructure (56%) and the time it takes to recharge on the road (50%).
NALSPA chief executive Rohan Martin said the research supports the environmental and cost-of-living value of PHEVs.
“This data quashes the claim that PHEV drivers hardly plug in or hardly use electric-only mode. Most PHEV drivers use their cars as electric vehicles most of the time by recharging the battery every night and using EV mode,” Mr Martin said.
“This poll also shows that PHEVs are acting as a stepping stone to pure EVs, with more than half of PHEV drivers indicating they would now consider buying a BEV for their next car. The reason why they aren’t potentially buying a BEV today is because of range anxiety - they’re worried about the level of charging infrastructure and the time it takes to recharge on the road.
Mr Martin also said the FBT exemption, together with the greater availability of larger vehicles in PHEV form compared with pure BEV, is helping to get everyday Australians to consider and buy a PHEV - helping them save money and cut emissions.
“What this data shows is that without the FBT exemption a whole lot of satisfied plug-in hybrid drivers would most likely still be driving less efficient, higher tailpipe emission cars,” Mr Martin said.
“The FBT exemption makes it affordable and accessible for Australians to try a PHEV, and once they try it, they like it. The exemption is cutting thousands of dollars off the cost of owning and running a PHEV, and drivers are also appreciating the significant savings from reduced fuel consumption.
“PHEV sales were up more than 120 per cent in the nine months to September compared to the same period last year, driven by a combination of the FBT exemption and the appeal of PHEVs as a gateway to electrification, offering motorists an EV without some of the concerns that may exist with a BEV.
“The FBT exemption is also helping more people who earn moderate incomes, and work in essential services like teaching and nursing, to embrace PHEVs.
“Plug-in hybrid vehicles are particularly attractive to Australians living in the outer suburbs who regularly travel longer distances but still want to drive with less or no tailpipe emissions on their normal daily commute.
“The FBT exemption for plug-in hybrids is set to expire in April next year and without it, it will become more expensive for everyday Australians to own the PHEVs they clearly want to drive today.”
A range of brands are releasing larger electrified vehicles that are not widely available in BEV form today but are in plug-in form including the Ford Ranger PHEV and BYD Shark PHEV.
“Australians prefer larger vehicles like dual-cabs and utes, but with few BEV options available today in the market, PHEVs offer a viable alternative – however, without incentives like the FBT exemption to boost affordability, many may stick with older, less efficient, higher-emissions vehicles or not consider a lower-emissions vehicle for their next purchase, slowing efforts to decarbonise.
“We strongly encourage our nation’s leaders to extend the FBT exemption for PHEVs to help keep car costs down and therefore the cost-of-living for everyday Australians, reduce air pollution in our communities, and support our national goal of reaching net zero.”
Media contact: Sofie Wainwright 0403 920 301