EVs could make up 50 percent of new car sales in Australia by 2030: Kia

Electric cars could make up half of all new car sales by the end of the decade.

That’s the bold prediction of the COO of Kia Australia, Damien Meredith.

As it gears up to launch its first ground-up EV – the Kia EV6 – the Korean car maker is buoyed by the growing interest in EVs.

So much so that Meredith believes EVs could outdo even the optimistic expectations.

“It’s happening and it’s happening quickly,” says Meredith of the EV shift that is being dominated in Australia by Tesla but is gaining pace as more competitive electric cars become available.

“We’ve done a fair bit of modelling and the reality is it’s happening far quicker than everyone thought,” he says, adding that he believes the market could reach half of all new vehicle sales being EV.

“I think probably by the end of this decade I think we’ll be pretty close to 50 percent EV. This is going to happen far quicker than we all thought.”

Some of the demand is being driven by rebates and incentives being offered by states and territories around Australia.

But for the most part it appears more compelling vehicles are leading the EV charge.

And Meredith believes tightening emissions regulations and the sheer scale of investment in electric vehicles will accelerate the EV push.

“I think it’s going to be pushed by legislation, it’s going to be pushed by the corporate decisions being made globally by the manufacturers that they’re moving to EV production rather than ICE production.”

The focus on luxury models means it’s at the $100K-plus end of the market where EVs have had a significant impact with some brands.

For Porsche, for example, its Taycan electric car was the second best selling model in the lineup in 2021, outselling the 911, Cayenne SUV, Cayenne Coupe and Panamera in Australia.

But the budget end of the market is set to get a big injection of fresh offerings, with new arrivals from existing brands as well as the imminent arrival of Chinese makers Ora and BYD.

“I think there will be more entrants that will come in,” says Meredith, highlighting Asia as the source of many new brands.

It’s that changing dynamic at the entry-level end of the EV segment he believes could sharpen prices and add competitiveness – in the same way brands such as Hyundai and Kia have done over the past couple of decades.

“I think there will be a bit of downward pressure because I think there will be a lot more manufacturers coming to play in Australia with EVs.”