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Call for return of EV subsidy amid SA record car sales

The Motor Trade Association’s latest vehicle sales report reinforces a change in electric car preferences among South Australian buyers, prompting a call for subsidies to cover hybrids.

May 06, 2024, updated May 06, 2024
The MTA has released the new vehicle sales report for April 2024. Photo: Unsplash

The MTA has released the new vehicle sales report for April 2024. Photo: Unsplash

New vehicle sales in April were the highest on record according to the MTA, at a 14.2 per cent increase from the previous April, which had previously been the strongest on record.

The top-selling car in South Australia so far this year is the Ford Ranger 4×4, followed by the Toyota RAV4, Toyota Hilux 4×4, Mitsubishi Outlander and Mazda CX-3.

While utes and SUVs were most popular, zero and low emissions vehicles made up 22.5 per cent of all new cars sold in April across the state, an increase from 20 per cent of sales in March.

Of these, hybrid and plug-in hybrid vehicles gained in popularity, with sales of hybrids up 116.6 per cent so far this year and sales of plug-in hybrids up 193.8 per cent from last April.

Electric vehicle sales have seen a 68.3 per cent increase so far this year, making up 7.3 per cent of all new cars sold in SA.

MTA SA/NT CEO Darrell Jacobs said the removal of “generous incentives” for the purchase of electric vehicles by the state government had partly driven the increase in hybrid sales.

The state government in late 2023 announced incentives for electric vehicles would be ending ahead of schedule, including a $3000 subsidy for buying a new electric vehicle.  

In its recent state budget submission, the MTA called on the government to return and expand the incentives to cover hybrids and plug-in hybrid vehicles.

“Long distances, developing charging infrastructure and a lack of options for utes and 4X4s mean we must put money back on the hood,” Jacobs said.

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“At a time when electric vehicles still command a price premium, consumer incentives must remain if we are to drive our decarbonisation.”

The MTA’s submission called for the $3000 incentive to be reinstated for vehicles valued below $68,750, with $2000 incentives for plug in hybrids, and $1000 for traditional hybrids.

“With cost of living front of mind for all households, affordability remains one of the top considerations for South Australians when purchasing their next vehicle,” Jacobs said.

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