Advertorial for IAG Australia
Electric vehicles are at the forefront of Australian motoristsβ minds, with purchase interest rising sharply from 20 per cent in 2024 to 31 per cent this year. While confidence in EVs is growing, concerns about charging, battery life and resale value are holding some buyers back.
NRMA Insuranceβs latest Changing Gears report shows a broader shift in consumer sentiment. Consideration for plug-in hybrid vehicles has jumped from 41 per cent to 58 per cent, leaving just 17 per cent of Australians who say they would not consider an EV at all.
Lower running costs and greater vehicle choice are driving interest, while longstanding concerns are fading. Yet as enthusiasm builds, questions remain around the practicalities of everyday ownership.
Bridging the adoption gap
NRMA Insurance chief executive Julie Batch says the car market has entered a new phase, with Australians looking beyond whether they want an EV to whether owning one will fit easily into their lives.
βThereβs no doubt 2026 has been the tipping point for EV adoption. More affordable vehicles expanded charging infrastructure and government incentives have all helped move EVs into the mainstream,β says Batch.
βAt the same time, rising petrol prices and concerns about long-term fuel security have given consumers even more reason to consider an EV.β
She adds Australians no longer need to be convinced about the benefits of EVs; what they are looking for now is confidence that owning one will be straightforward and practical.
βAustralians want to know they can charge the vehicle where they live, that their battery is safe and will last, and that a local repairer will be able to fix it if something goes wrong.
βOur research shows the barriers to adoption are less about the technology itself and more about the everyday realities of ownership. Addressing those concerns will be critical to helping more Australians make the switch.β
Perception versus reality
Among the 17 per cent of Australians who would not buy an EV, battery health and longevity top the list of concerns (60 per cent), followed by driving range (56 per cent), charging time (54 per cent) and battery fire risk (52 per cent).
Access to charging infrastructure also remains a challenge, with nearly half of those declining to consider an EV citing a lack of public charging, and 35 per cent saying they are unable to charge at home. A further 26 per cent cite a lack of mechanics who can service EVs as a barrier.
The report also suggests confidence in battery health could be critical to unlocking Australiaβs second-hand EV market. More than half of Australians considering an EV (54 per cent) would be open to purchasing one second-hand, while 82 per cent believe there should be a way to monitor and test battery health.
Fact over fiction
Batch says the findings imply many Australians are still relying on outdated perceptions.
βSome of the concerns we see around battery health and safety donβt reflect the reality of modern EVs, but that doesnβt mean they should be ignored. The challenge is helping Australians separate fact from fiction and to make decisions based on reliable information,β she says.
βFor example, independent battery testing is already widely available and can provide buyers with a clear picture of a batteryβs condition. When it comes to fires, EV battery fires are extremely rare and when charged correctly, thereβs virtually zero fire risk.β
Shawn Ticehurst, head of automotive research at NRMA Insurance, says concerns about repairs and servicing are often greater than the reality on the ground.
βWhile 26 per cent of EV non-considerers say a lack of mechanics is a barrier, the industry is rapidly building the skills and training needed to support more EVs on Australian roads,β Mr Ticehurst says.
βAs EV ownership grows, so too does the repair and service network. The challenge is making sure consumers are aware that capability is growing alongside adoption.
βWhat this research tells us is that alongside improving charging access and developing a national approach to battery health, Australians are looking for trusted, practical information that helps them make informed decisions and feel confident about EV ownership.β
The road to 2030
NRMA Insurance, the countryβs largest motor insurer, currently sees EVs make up about 3 per cent of its motor policies, with the share expected to rise to approximately 10 per cent by 2030. Tesla accounts for about 50 per cent, closely followed by BYD, MG, Hyundai and BMW. Other emerging brands include Geely, Zeekr and Omoda Jaecoo.
With an estimated 500,000 battery EVs now on Australian roads, representing about 3 per cent of the national vehicle fleet, turning widespread consumer interest into long-term confidence will depend on delivering transparent battery performance data and a clear path for everyday maintenance.
Changing Gears: Closing the Confidence Gap is the third instalment of the series, conducted by market research company Ipsos on behalf of NRMA Insurance. Click here to view the full report.
