Posted June 06, 2018 10:01:58 Australia’s electric car sector is in deep trouble, with analysts forecasting the number of vehicles on the road to drop by more than a third over the next decade.
The figures, released by the National Electric Vehicle Manufacturing Association (NEVA), come amid a wider downturn in the car market and are a reminder of the risks investors face when investing in an industry that is still developing.
Here’s what you need to know about the industry.
Key points: The National Electric Vehicles Manufacturing Association said more than 1.2 million EVs have been sold in Australia since it was set up in 2015.
The NEVA expects sales of around 1.5 million EVs by 2021, a fall of almost 30 per cent on last year.
Demand for the vehicles is falling, with an estimated 80 per cent of all new vehicles in the country being electric.
It said sales of electric vehicles will fall by 40 per cent in 2021.
NEVA chief executive, Craig Thomson, said it was “very concerning” the industry was “on the cusp of collapse”.
“We’ve seen a lot of bad news about the electric vehicle market over the last few years,” he said.
“The numbers are pretty bleak.
We’re talking about almost 60 per cent decline over the past year.”
The decline in demand from the private sector is also putting pressure on the market.
While the NEVA predicts demand will continue to decline in 2021, the industry is already facing “a severe and sustained decline” in the private market, Mr Thomson said.