Economics Report: Australian Electric Vehicle Market Analysis

This economics report provides a detailed analysis of the electric vehicle market in Australia, examining the demand and supply dynamics of electric vehicles, charging stations, and unleaded fuel. It presents market share data for various electric vehicle models, explores the growth of charging infrastructure, and discusses the impact of government policies aimed at increasing electric car usage. The report includes graphical representations of demand curves and price fluctuations, and it evaluates the effectiveness of different policy initiatives, such as vehicle efficiency regulations and purchase incentives, in promoting the adoption of electric vehicles. The analysis also considers the economic implications of these policies, including their impact on sales revenue, GDP, and environmental benefits, offering a comprehensive overview of the economic landscape of electric vehicles in Australia. The report concludes by summarizing the key findings and emphasizing the importance of financial and non-financial initiatives in fostering a sustainable and environmentally friendly automotive industry.

ECONOMICS

Table of Contents
INTRODUCTION...........................................................................................................................1
Electric vehicle market................................................................................................................1
The market for electric vehicle charging....................................................................................2
The market for unleaded fuel......................................................................................................4
Government policies that could be implemented to increase electric car usage.........................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Study, analysis and critical evaluation of production, consumption and wealth is
considered as economics. Elasticity of demand indicates sensitivity of people towards demand of
product due to change in prices. (Azadfar, Sreeram and Harries, 2015). There is a brief
introduction of three market as electric vehicle market, the market for electric vehicle charging
and the market for unleaded fuel presented in this report. A graphical representation of demand,
supply and elasticity of Price elasticity of demand in respect of the above three market in
Australia are defined in this report.
Electric vehicle market
Electric car market has been increased in last five years in Australia. Electric vehicle is
being demanded at high rate in present scenario. It is observed that type of forecasting models
were evaluated in terms of analysing the electric vehicle market in worldwide. Tesla is one of the
international brand of producing electric vehicle and supplying world wide. Various
multinational car industries are competing with each other. There are type of electric vehicles
build their separate image in international electric market which are presented in below
Model Market share
TESLA model S 29.00%
TESLA model X 16.00%
Chevrolet bolt 16.00%
Nissan Leaf 15.00%
Fiat 500e 8.00%
VW e-Golf 4.00%
Ford Focus 2.00%
BMW i3 2.00%
Kia soul 2.00%
Other 6.00%
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It is seen that there is a positive aspects and figure received in terms of demand and price
of electric cars and the electric charging stations. There are large number of consumers increased
in last five years for electric cars. It is recorded that 0.4% was the consumer criteria recorded in
2011 and 2012 that increased up to 1.2% in 2013. 50.2% of consumer group was recorded they
are seeking for environment friendlily and cost effective vehicles (Kim, Shin and Chung, 2011).
As per the report it of seen that electric vehicle in Australia is in down wards due to lack of
awareness and high cost of electric vehicles. It get decreased by 23% form 2015 to 2016. 701m
plug in hybrid electric vehicle and 668 fully electric vehicles were recorded in 2016.
The market for electric vehicle charging
There are large number of electric vehicle charging station established in Australia and
expected to enhanced by USD 30.41 billion till 2013 with CAGR of 42% between 2018 and
2023. The global environmental policies and regulations related to carbonic elements emission
exhausted form diesel and petrol engine vehicles has been more straight forward and strict.
Government also putting efforts to explore the electric vehicle market to build and environment
friendly system world wide. Various countries are considered as initiatives to enhance the use of
electric vehicle to improves the concerned related to environmental pollution and the global
heating.
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As per the report it was analysed that the electric vehicle charging infrastructure is in
progressive way in Australia. The market of EVC also has been increased in comparison to last
years. Government putting efforts and try to aware public to use the PEV models and low
electricity cars and models to prevent the carbon emission (Lucas, Silva and Neto, 2012). A
strategy helps in managing the scope of electric charging infrastructure to outline the Energia's
report.
The
above graph represent the consumption and demand of different elements under electric vehicle
charge. As per the above graphical information five major elements are defined as Manganese
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(tonnes), nickel in tonnes, Cobalt in tonnes, Lithium in tonnes and lithium ion battery demand
(Gwh). Use of Lithium ion battery mainly demanded under the electric vehicle charging and
analysed in this context.
After a periodic time it is analysed that electric vehicle charging stations are the essential
elements to expand the scope of electric vehicles. The above curve defines the price fluctuation
in electric charge.
The market for unleaded fuel
Increased prices of petrol and diesel in international market have enhanced the demand of
unleaded fuel in Australia. However, prices of petrol decreased form a high of 135.1cpl in
January 2017 to low of 116.4cpl in starting of July 2017. Price subsequently increased by 14.7cpl
to 131.1 cpl at the end of September 2017. According to Brisbane petrol market report the
ACCC. As per above report the market of petroleum units decreased in Australia and it is seen
that the price of petrol decreased in major five cities. Price of Singapore Mogas 95 unleaded
which is called as Mogas 95 set a relevant benchmark in Australian unleaded market.
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There are type of vehicle car industries are merged to set up the service station with in the
market. There are type of monthly average Mogas 95 prices varied be 12.4 cpl from a various
low as 49.9 cpl in June and the in July 2017 to a high of 62.3 cpl in November 2017. the average
quarterly and monthly retail prices in the five cities was 118.4 cpl in july 2017 to 138.7 cpl in
December which was recorded high in both the perspectives. consumption of Mogas 95 prices
were recorded as 60.4 cpl which was recorded as 7.4cpl higher than the previous quarter.
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(Source: Demand and supply of gasoline, 2017)
The above demand curve defines the consumption and price of gasoline in Australia. The
price of gasoline products were $1.00 per gallon for 800 million of gallon quantity demanded
and 500 gallon was supplied. 550 million of gallons was supplied in respect of 700 million of
gallons quantity required at the rate of $1.20 per gallon. 600 million gallons quantity was
supplied in comparison to 600 quality demanded at the rate of $1.40 per gallon, it was the
equilibrium point between the demand and supply of the gasoline products. This was the initial
point which was considered to bifurcate the function point between the demand and supply.
Government policies that could be implemented to increase electric car usage
There are type of regulations and policies was formed subject to enhance the scope of
electric vehicle in Australia automotive industry and electric car market. At international market
scope of electric charging infrastructure is been increasing day by day and it is analysed that this
the basic element which may lead the Australian government to attain the environmental benefits
by reducing the petrol stations and consumption of high carbonic emission engines (Rose, 2012).
As per the Energia's benchmarking of international comparator market indicated towards the
significance of financial and non financial initiatives of and review of the case in Norway. This
report was mainly associated with emerging the scope of Plug in Electric Vehicles (PEV)
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charging infrastructure and market modelling of PEV sales. It The case revealed various
financial and non financial initiatives which may lead the nation towards environment friendly
policies and regulations.
There is a policies are made in terms of exploring the use of electric cars which are the
part of the policy of Plug in Electric Vehicles
 Vehicle efficiency regulations: In this regulation 200-300% increase in uptake on US
experience was recorded in research.
 Third party import regulations: it is set to increase the 200% in PEV models available
and 800% increase in uptake based on NZ experience.
 PEV purchase initiatives: it is decided to provide -$4000 subsides on every PRV model
availability by 20%, increment of PEV model as per UK experience
 Government purchase targets: Government model is to undertake to PEV model as per
300-500 sales based on Australia OEM experience.
 Public infrastructure availability: Size get increased by 20% with the rate of 50%
based upon the UK data and Dutch experience, respectively.
It is found that type of financial and non financial benefits were gained by Australia after
undertaking the policies and the charges. Additional demand of PEV models increase the sales
revenues and the GDP of country (Skea, Ekins and Winskel, 2011). The benefits of these stations
can be evaluated by analysis the ability and trip distance requirement section and using the
convenient public charging option. It is necessary to determine the need of electric charge
vehicles in Australia.
There are significant policies and regulations were introduced with specific perimeters.
The new environmental policies and rules affected the sale price of electric vehicle and the petorl
vehicle.
CONCLUSION
As per above given report the economic aspect of supply, demand and elasticity is
defined as per customer behaviour. Analysis of economic factors subject to use of electric
vehicles and the price initiatives are defined in this report. The graphical representation given
subject to define the price, demand and supply of electric car, charging station and unleaded fuel.
It is resulted that the type of financial and non financial initiatives were gained by the country
with reference to managing the core operations of business. Market review of electric vehicle
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mainly preset the picture of electric vehicle. Government policies introduced to accelerate the
sales graph of electric vehicle.
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REFERENCES
Books and Journals:
Azadfar, E., Sreeram, V. and Harries, D., 2015. The investigation of the major factors
influencing plug-in electric vehicle driving patterns and charging behaviour. Renewable
and Sustainable Energy Reviews. 42. pp.1065-1076.
Kim, H., Shin, E. S. and Chung, W. J., 2011. Energy demand and supply, energy policies, and
energy security in the Republic of Korea. Energy Policy. 39(11). pp.6882-6897.
Lucas, A., Silva, C. A. and Neto, R. C., 2012. Life cycle analysis of energy supply infrastructure
for conventional and electric vehicles. Energy Policy. 41. pp.537-547.
Rose, G., 2012. E-bikes and urban transportation: emerging issues and unresolved
questions. Transportation. 39(1). pp.81-96.
Skea, J., Ekins, P. and Winskel, M. eds., 2011. Energy 2050: making the transition to a secure
low carbon energy system. Routledge.
Online
Demand and supply of gasoline, 2017. [online]. Available through:
<https://courses.lumenlearning.com/economics2e-demo/chapter/equilibrium-surplus-
and-shortage/>.
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