EVs get a boost from government partnerships
Two Australian Government organisations have formed partnerships with business in order to bump up the nation’s EV uptake and infrastructure.
Supporting dealer and supplier networks: CEFC
The Australian Government-owned Clean Energy Finance Corporation (CEFC) will invest $50 million with Angle Auto Finance (AAF) with the aim of getting 20,000 new electric vehicles (EVs) onto roads over the next two years.
In its capacity as a large independent retail auto financier, AAF will draw on this warehouse finance to speed the turnover and recycling of credit for major vehicle dealer and supplier networks, allowing them to increase the volume and range of EVs they bring to Australia. It will also provide discounted consumer finance for retail EV loans financed by AAF.
“We’re delighted to have entered into this arrangement with the CEFC,” said Angle Auto Finance CEO Aaron Baxter. “It helps us deliver on a commitment to increase the supply of EVs into the Australian market and make it easier for Australians to finance the purchase of an EV.
“We’ve already had considerable success in providing wholesale floorplan finance to importers of EVs. This facility provides us with the ability to further support the sector, including competitive retail finance for buyers,” Baxter said.
CEFC Head of Debt Markets Richard Lovell said that as a specialist investor, the CEFC had a strong record of developing new financing approaches to increase investment in a low-emissions future, whether it was in renewables, climate tech, sustainable housing or electric vehicles.
“This innovative transaction is the first known floorplan finance arrangement specifically targeting supply issues, one of the major barriers to the growth of Australia’s EV market,” Lovell said.
“Together with AAF, we are creating a dealer supply side support mechanism to increase the volume of electric vehicles imported into Australia. In backing this financing approach, we can make a material difference for EV importers, dealers and consumers.”
Approximately 8.4% of all new cars sold in Australia in the first six months of 2023 were electric vehicles, a 120.5% increase on EV sales across all of 2022.1 But Australia still lags significantly behind new EV sales in the UK and Europe.2
According to analysis from the Electric Vehicle Council, Australia will need to have as many as one million EVs on its roads by the end of 20273, with EVs accounting for more than 50% of all new cars sales by 2030 if Australia is to meet its climate targets.
Boosting EV rentals: ARENA
The Australian Renewable Energy Agency (ARENA) will offer $4.76 million in funding from the Driving the Nation Program to Europcar Mobility Group for the ‘Electric Rental Vehicle and Charging Infrastructure Rollout’ project.
The project will see Europcar Mobility Group, one of Australia’s largest vehicle rental companies, installing 256 chargers across at least 41 sites around Australia, including airports, metropolitan hubs and regional locations, to support the deployment of about 3100 passenger electric rental vehicles over the next three years.
The project will make electric vehicles more accessible to thousands of individual and business customers for rent at prices comparable to fossil fuel equivalent vehicles.
ARENA CEO Darren Miller said vehicle rental businesses are in a unique position to assist with the uptake of electric vehicles in Australia.
“It’s promising to see that Australian EV sales hit record numbers in 2023, but it’s clear that much more needs to be done to see EV sales overtake the sales of traditional internal combustion vehicles. This includes providing Australians with access to more affordable makes and models of electric vehicles, which this project does,” he said.
Europcar Mobility Group plans to operate the EVs for up to two years across a range of rental service offerings, before reselling the vehicles in the second-hand car market through an established dealer network.
By increasing the number of EVs and the variety of models available to the public, it is expected that this will lead to lower costs and reduce current barriers to entry for Australians looking to purchase an EV.
1. Electric Vehicle Council, State of Electric Vehicles, July 2023. p 3.
2. International Energy Agency, Global EV Outlook 2023, 2023.
3. Electric Vehicle Council, State of Electric Vehicles, July 2023. p 9.
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