It was a breakout year for electric vehicles in Australia in 2023 with 87,217 being delivered. However, without Tesla the numbers would have been very disappointing for EV proponents. Tesla delivered 46,116 vehicles (Model 3 – 17,347 and Model Y – 28,769) which gave it 53% of the EV market.
Take a drive in any Australian capital city and you’ll find yourself surrounded by Tesla drivers. In only a few short years Tesla has transitioned from a niche brand to a mainstream manufacturer claiming eighth spot in the top 10 list.
While other manufacturers have struggled to supply EVs in any significant volumes (despite a record year for car sales), Tesla buyers have been able to access the state government rebate schemes with a consistent volume of cars arriving each month.
Tesla has also benefited from the increase in demand since the Electric Vehicle Discount Bill was introduced in July 2022. The bill provides an exemption on Fringe Benefit Tax for businesses providing electric vehicle to staff that are used for personal travel.
The FBT Exemption also applies to novated lease vehicles which has introduced a large number of people to salary packaging for the first time. Not paying FBT reduces the annual cost of a novated lease and makes EV ownership more attainable for thousands of employees who are eligible for novated leasing.
Tesla’s EV sales success should continue in 2024 because the demand is still there from novated lease buyers, and other manufacturers appear to be constrained for EV supply.