A large percentage of Australians express a willingness to transition to electric vehicles, yet currently favor hybrid vehicles.

In a recent survey conducted by Money.com.au, it was revealed that more than half of Australian drivers (52%) are considering switching to an electric vehicle (EV) in the next five years. However, the transition to EVs is not expected to be a sudden one, with hybrids serving as a "stepping stone" for many Australians before going fully electric.

Sean Callery, a finance expert from Money.com.au, believes that this interim step is necessary until prices fall and confidence in battery performance improves. The survey found that hybrids are indeed leading the transition, with 35% preferring plug-in hybrids. This preference is particularly noticeable among Gen X drivers, who make up the largest group of those favoring a fully electric car, at 23%, followed closely by Millennials at 20%.

One of the key barriers to EV adoption is the high upfront costs, with 21% of respondents citing this as a concern. Limited charging infrastructure (18%) is also a concern for potential EV buyers. Other concerns raised were battery replacement costs, insurance premiums, resale value, and limited model choice.

Despite these challenges, the survey found that only 17% of drivers would choose a fully battery electric vehicle (BEV) over a petrol or diesel car. This is in contrast to 45% who say they will stick with traditional fuel options.

The survey also revealed that Gen Z drivers are the most likely to consider an EV in the next five years (58%), with 42% preferring hybrids over BEVs. This is promising news for the future of EV adoption in Australia, as Gen Z drivers are the future of the automotive market.

Manufacturers are likely to increase their offering of plug-in hybrid vehicles in Australia to support the transition to electric vehicles. Global brands such as Audi, Mercedes-Benz, Toyota, Volvo, Hyundai, and Volkswagen have announced expansions or model launches of plug-in hybrids worldwide, which could extend to the Australian market.

However, distrust in battery performance or longevity (21%) remains a major barrier to EV uptake. As battery technology continues to improve and prices fall, it is hoped that this barrier will be overcome, and more Australians will make the switch to electric vehicles.

In conclusion, while the transition to electric vehicles in Australia is expected to be gradual, the interest in EVs is rising. Hybrids are serving as a bridge to the future, providing more model choice across familiar brands and helping to build confidence in battery performance. As battery technology improves and prices fall, it is expected that more Australians will make the switch to electric vehicles, contributing to a cleaner and more sustainable future.