Overview

• Chinese electric vehicle (EV) manufacturers, led by BYD, are rapidly expanding their presence in Australia, capitalizing on a market without trade barriers and benefiting from government subsidies and tax incentives.
• The Albanese government's push for EV adoption, aiming to reduce emissions, has significantly increased EV sales, with EVs accounting for 7.2% of new car sales in 2023, up from 3.1% the previous year.
• Despite the growth in EV sales, concerns remain about the affordability of electric vehicles for the average Australian, with most models being expensive and having long waiting lists.
• The Australian government is considering introducing vehicle emissions standards to encourage a wider range of affordable EV options, facing opposition from parts of the auto industry and political challenges.
• Relations between Australia and China have improved, facilitating the entry of Chinese EVs into the Australian market, despite ongoing international tensions over trade and cybersecurity concerns.