Domestic sales of electric cars have risen at record levels in the past six months amid state government incentives as the industry forecasts greater price parity and consumer choice over the next two years.

While Australia’s take-up of battery-electric and plug-in hybrid cars haslagged many European and Asian nations,new car sales data released in August showed 8688 battery and plug-in EVs were sold in the first half of 2021,which is more than in any calendar year. Since last year,six more models under $65,000 have been launched in the Australian market,bringing the total available under that price to 14.

The federal government has been heavily criticised by carmakers and advocacy groups for its refusal to set targets in the sector and previous public ridicule of the technology. It earlier this yearruled out subsidising new cars to encourage their widespread take-up.

FederalLabor in March promised it would remove government charges on non-luxury EVs,including import taxes and fringe benefits tax,to drive down the sticker price for Australians who want to drive electric cars.

But instead,the federal government has let the states do the heavy lifting,with Victoria setting a sales target of 50 per cent of new vehicles to be zero emissions by 2030 while NSW announced an EV strategy to increase sales to 53 per cent by 2030-31. Both states and several others have also introduced financial rebates of up to $3000 for new EV purchases while some jurisdictions will waive stamp duty and registration fees.

Mr Morrison said the federal government would bring forward a package of priority market reforms to state and territory energy ministers to ensure the electricity grid was EV-ready. While the list of reforms is likely to grow as new issues emerge,it will start with exploring network tariff reform to encourage charging behaviour and infrastructure rollout that will support optimal grid operation,promoting smart chargers in households and tasking energy market bodies with partnering with governments on grid integration.

As part of a “fleet-first” strategy,which will encourage companies to invest in low-emissions cars and in turn flood the second-hand market with EVs,the Australian Taxation Office will investigate issuing updated guidance for business on the tax treatment of low-emissions vehicles to provide clarity for fleet purchasing.

The Electric Vehicles Council said while the strategy would support and accelerate the rollout of some charging infrastructure,it was “a fizzer”.

It again called for subsidies,tax incentives and sales targets and said minimum fuel efficiency standards were needed.

“If it contained fuel efficiency standards and rebates it would give Australians more choice,Electric Vehicles Council chief executive officer Behyad Jafari said on Tuesday.

“The best and most affordable EVs manufacturers are producing would make their way swiftly onto our market. Fuel efficiency standards are the absolute bare minimum of what you would expect in any 21st century plan.”

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