Half the new cars sold in Australia in 2035 will be electric, a new government report forecasts.
The report by the Bureau of Infrastructure, Transport and Regional Economies predicts electric vehicle sales across Australia will to reach 8% by 2025 and 27% by 2030.
Globally, the EV share of new sales is predicted to reach 18% by 2025 and 36% by 2030 and there is an estimated US$300 billion being sunk into the EV sector.
The Morrison Government has said it will introduce a national electric vehicle strategy to cut carbon dioxide emissions by 10 million tonnes by 2030.
This follows Labor’s election pledge to set a target of 50% new car sales being electric by 2030.
After looking at uptake of electric vehicles in 22 countries, the bureau suggests the electric vehicle share of new car sales in Australia will rise from about 0.34% today to 8% in 2025.
It should then leap to 27% of new car sales in 2030 and 50% in 2035, as prices of electric car technology fall.
The report says battery cost is expected to at least halve by 2025 and continue to decline, while battery size and vehicle range should more than double by the middle of the next decade.
