Australia may soon enjoy bigger “grey market” for second hand EVs | RenewEconomy

Australia may soon enjoy bigger “grey market” for second hand EVs

Increasing numbers of Australian drivers want their next car purchase to be electric but can’t afford the few models on offer. There might be a better option.

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The Driven

There’s seems to be no doubt that many Australian drivers would like their next car purchase to be electric, if only they could afford one of the few models on offer in Australia.

But there might be a better option. A new report prepared for the Australian Renewable Energy Agency highlights the opportunity for the creation of a new “grey market” – one that would allow a major new player to bring in secondhand electric EVs to Australia, and at a price more people could afford, or even new models from a manufacturer that can’t be bothered to do it itself.

To date, there are few second hand EVs available in the Australia market. Some are bringing them in from Japan, but at a modest scale – unlike New Zealand, where around half of all EV purchases are second hand EVs shipped in from Japan.

The report by EV specialists Evenergi for ARENA says the establishment of a viable market for the importation of used electric vehicles represents a significant business opportunity, and is one of the most important ways that the adoption of electric vehicles can be accelerated in Australia.

The opportunity is being created by a new rule that removes the current restrictions – to 100 a year – in the import of cars not currently brought to Australia by their manufacturer. It’s used by companies that bring in American-made vehicles and are adapted for Australia.

The new rule removes that numerical barrier. And it could be a great opportunity to plug into the second hand EV market, or even new models currently not available in Australia.

“Organisations such as NRMA are well positioned to execute this initiative as it has the complementary products required to fully articulate the revenue opportunities, and to lend the credibility needed to ensure the initiative is a success,” it says.

“Alternatively aggressive and well capitalised start-ups or existing importing incumbents could capitalise on the opportunity.”

Australia’s EV market is showing signs of strength, albeit off a small base, even while the overall car market is experiencing a slump that has lasted more than two years already.

But there remain significant barriers: Comparatively few models are available, and there is no pure electric that can be bought for less than $A50,000, including on-road costs.

To read the full version of this story – and view the photo gallery – on RenewEconomy’s electric vehicle dedicated site, The Driven, click here…

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