Electric vehicle brands taking on Tesla and Toyota as they open megastores and bring new models to Australia – and how EV buyers are set to benefit
Australian drivers have been behind the wheel of almost 57,000 new electric vehicles this year, most of which were made by just one company.
US car manufacturer Tesla dominates low-emission transport in Australia, with more than 57 per cent of the market.
But a growing number of car brands are emerging to challenge Tesla’s lead, most of which are new names to Australian buyers and produce only electric cars.
More EV brands are entering the Australian electric vehicle market, which is dominated by US carmaker Tesla (pictured), which has almost 60 percent of the market share
Experts say the companies will not only help popularize more environmentally friendly vehicles, but also help expand choice, lower prices and encourage older car brands to act before policy changes.
BYD is one of the most aggressive new car brands, opening the first of three planned ‘megastores’ in Australia this week, showcasing its range of electric vehicles and the technology behind them.
The brand will also attempt to set a record for ‘world’s largest EV test drive’ in Australia on September 23.
Luke Todd, CEO of EVDirect, which represents BYD, says the brand has been criticized for its aggressive campaigns and “maverick” attitude, but the approach is paying off.
“We can take a lot of criticism, but we will stay strong and move forward,” he said.
“There are a lot of people who don’t want anything to change.”
BYD launched its first electric car, the Atto 3, in Australia last August and this year claimed the title of the country’s second most popular electric car brand, with more than 8,000 models sold by 2023.
The company recently launched the sub-$40,000 Dolphin electric hatchback in Australia and, Mr Todd says, would add more cars to its range in 2024.
“We have five models that will be on the market by the end of next year,” he says.
“We believe we will hold a very prominent position and continuously challenge the automotive sector.”
Another new brand, LDV, this week unveiled plans to bring larger battery-powered vehicles to Australia, including a more powerful electric car with a 600km range and an electric van called the eDeliver 7.
The new vehicles could compete with an electric sports car from MG and the first electric SUV from Swedish company Polestar, both of which will be launched in 2024.
Luke Todd (pictured), CEO of EVDirect which represents BYD, says the company’s ‘maverick’ style approach to its marketing has paid off as more Australians start to take notice of their cars
Chris Jones, national president of the Australian Electric Vehicle Association, says it is no coincidence that many of the new brands are coming from China, the world’s largest car market, where they can experiment with vehicle concepts and export the products that work best.
The emerging brands also don’t have to fund traditional combustion engine production, he says, or wait for Australia to introduce laws to encourage them to supply electric cars.
“They are right to fill the vacuum for alternative car brands in Australia; they don’t wait for policy to change,” Dr. Jones said.
“The head of Volkswagen famously said he would only sell electric cars in the Australian market if there were policy changes.”
Dr. Jones says many of the first electric vehicles launched in Australia were SUVs and emerging brands had a huge opportunity to expand the types of cars available to local drivers.
“We want to see more electric vans, utes and hatchbacks,” he said.
‘We’re already seeing a glut of (Toyota) HiLux ute conversions, so if LDV can come up with some good quality electric vans and utes they’ll knock these out of the park.’
BYD launched its first electric car, the Atto 3, in Australia last August, claiming the title of the country’s second most popular electric car brand
Hussein Dia, a future professor of urban mobility at the University of Swinburne, says the entry of new car manufacturers into the local market is also putting pressure on the entry price of electric vehicles.
Most of the early electric cars launched in Australia will fit into the luxury price bracket, he says.
“Our hope is that these new competitors compete in lower-priced segments,” he said.
“Teslas are still priced out of some people’s reach.”
The cost of the company’s entry-level car, the Model 3, recently rose to $61,900.
Professor Dia says Tesla is likely to maintain an early lead in Australia, but a fuel efficiency standard, promised as part of the federal government’s National Electric Vehicle Strategy, would help big-name carmakers justify introducing more electric models Down Under.
Experts say new entrants to the EV market are putting pressure on brands like Tesla, while the automaker’s cars are still relatively expensive – the price of the Model 3 recently rose to $61,900
The standard would set an emissions cap for a company’s fleet and fine those who exceed it.
“Some brands feel the Australian market is too small and will send their electric vehicles elsewhere until there are restrictions in the local market,” Prof Dia said.
‘If a fuel efficiency standard is introduced, companies will send more variety and more inventory.’