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Electric vehicle market set for growth as 15% of Aussie car buyers looking to purchase an EV in next 12 months, according to Nielsen

15/10/2024

Australia's most desired EV models revealed

More than half a million Australians want to buy an EV in next 12 months

Sustainability and environment the major drivers for EV purchase intention

EV ad spend up 711% from 2021

Sydney, Australia - October 16, 2024 - Nielsen's latest Consumer and Media View (CMV) & Ad Intel data reveals a growing interest in electric vehicles (EVs) among Australian consumers. 521,000 Aussies, or 15% of the 3.4 million people intending to purchase a car in the next 12 months, are considering an EV as their next purchase, highlighting a shift towards electric, with 3.5 million of all Australians now actively exploring EV options.

Environmental consciousness plays a major role in consumer preferences for EVs and hybrid vehicles, with data showing that 74% of potential EV buyers saying they're good for the environment. Additionally, 74% of these consumers cite concern for the environment and the well-being of their families and communities as key motivators for their interest in hybrid or EV vehicles.

The data also shows that Australians are increasingly open to the new technology, with 72% of likely EV purchasers showing a strong interest in hybrid or electric vehicles, and more than half (56%) saying they are also seriously considering purchasing a fully electric car.

Additionally, Nielsen data shows that consumers are increasingly less concerned about the performance of EV vehicles, when compared to petrol and diesel models, with 69% of potential EV buyers believing they offer robust performance .

Meanwhile, fuel costs continue to impact consumer decision-making, with 75% of those considering an EV purchase saying fuel prices will influence the type of car they're going to buy.

Consumers looking to purchase an EV also do their research, with 80% of potential buyers spending considerable time comparing options before making a purchase. Importantly, 57% prioritise vehicle quality over brand, with performance and value proving more important than name recognition.

Potential EV buyers are also more likely to choose medium passenger vehicles (46%) and compact 4WDs (34%), with small passenger vehicles (33%) also ranking high.

In terms of specific models, Tesla leads the charge in the Australian EV market, with four of its models ranking among the top five choices for potential buyers: 1. Tesla Model 3, 2. Tesla Model Y, 3. Tesla Model X, 4. Tesla Model S, 5. BYD Atto.

SUVs are overwhelmingly the most popular choice for potential EV buyers, with 78% considering this type of vehicle. 48% are focused solely on SUVs, while 22% are only considering cars, but 30% of buyers are open to both.

These changing consumer preferences are reflected in the media spend by auto brands, with ad spend in the EV sector jumping from $8.2 million in FY 2021 to $66.5 million in FY 2024 an increase of 711%, according to Nielsen Ad Intel.

Nielsen data also reveals a broad age distribution among potential EV buyers, but it's younger Australians, particularly those aged 18-24, showing the most interest, with 23% of potential EV buyers falling into this age bracket.

Glenn Channell, Nielsen's Pacific Head of Advanced Analytics, said: Nielsen's latest data clearly shows that electric vehicles are no longer just a niche in the Australian auto market. With 15% of car buyers now actively considering an EV in the next 12 months and a further 3.5 million Australians exploring EV options, the shift towards more sustainable options is undeniable. Environmental concerns and the growing cost of fuel are playing a pivotal role, with a significant portion of potential buyers motivated by the positive impact EVs and hybrids can have on the environment and their communities. As performance myths fade and consumers place increasing emphasis on vehicle quality over brand, the Australian automotive market is on the brink of an electric revolution. The Australian automotive landscape is poised for significant transformation as more consumers make the shift.

About NielsenNielsen shapes the world's media and content as a global leader in audience measurement, data and analytics. Through our understanding of people and their behaviours across all channels and platforms, we empower our clients with independent and actionable intelligence so they can connect and engage with their audiences now and into the future. Nielsen operates around the world in more than 55 countries.

Learn more at www.nielsen.com and connect with us on social media (X, LinkedIn, Facebook and Instagram).

About Nielsen Advanced AudiencesThe digital world is competitive and saturated. Capture the attention of your most important audiences with the right message, on the right channels, at the right time. With Nielsen Advanced Audiences, you can enrich your first-party data with thousands of external data points; then slice, dice and mine it with full flexibility in your CDP, to connect with customers who matter across any channel like never before. Be confident you can access and engage your audience with messages that cut through the noise and get the most impact from your marketing efforts and budget.

Media ContactDan Chapman

Assoc. Director, Communications, Nielsen APAC

dan.chapman@nielsen.com

+61 404 088 462
LINK: https://www.nielsen.com/news-center/2024/electric-vehicle-market-set-f...
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