In a pre-budget submission, the Motor Trade Association SA/NT said plug-in hybrid vehicles, hybrid-electric vehicles, electric light commercial vehicles and electric motorbikes should be added to the state government’s electric vehicle incentive scheme.

Currently, the scheme offers $3000 subsidies only for purchases of battery electric and hydrogen fuel cell cars worth less than $68,750.

The MTA submitted that the number of $3000 subsidies on offer should double from 7000 to 14,000.

The peak body, which represents more than 5500 businesses in the automotive retail, service and repair industry, said hybrid vehicles were on average cheaper than electric vehicles and provide a “gateway” for motorists who might not have otherwise considered a purchasing a zero or low-emissions vehicle.

“In order to reduce emissions, a full gambit of incentives should be applied to suit motorist preferences and budget constraints,” MTA SA/NT chief executive Darrell Jacobs said.

“For example, a typical South Australian family might not be able to afford an electric vehicle SUV but they might be more willing to try a hybrid model which will emit fewer emissions than a petrol or diesel car.”

Jacobs said there was “not a one size fits all solution” to transitioning South Australia’s vehicle fleet and the path towards “sustainable decarbonisation” should be “flexible and agnostic”.

The MTA has previously told the federal government that it is opposed to setting electric vehicle sales targets, arguing they would “unfairly distort the market”.

The call to double the number of $3000 subsidies available for electric cars would see the state government’s contribution to the scheme increase from $21 million to $42 million.

The incentive program was introduced by the former Marshall Government in October 2021 as a compromise to pass a road-user charge on electric vehicles and plug-in hybrid cars.

The tax, set to come into force in 2027, was scrapped by the Malinauskas Government in February this year but the subsidy scheme remained.

As of March 14, 2023, 700 subsidies have been issued and 6300 are still on offer, according to Treasury Department figures.

The number of electric vehicles sold in South Australia rose more than 200 per cent last calendar year, increasing from 314 in 2021 to 1426 in 2022.

While electric vehicles represented only 2.05 per cent of sales in 2022, petrol car sales dropped by 6.6 per cent.

The RAA is currently constructing a state-wide EV charging network with 140 stations across South Australia.

The project, supported by a $12.35m state government grant, is expected to be complete by the end of 2024.

InDaily contacted the office of Transport Minister Tom Koutsantonis for his views on the MTA submission. In response, a government spokesperson said: “All submissions from industry group and other stakeholders will be considered as part of the budget process.”