That’s the approximate amount you could save per year if you own a car in Melbourne and switch to an electric vehicle (EV).
Over 5 years, that would mean over $7,600 in savings…not too shabby.
This is according to a tool developed by Evenergi, the electric vehicle council cost calculator. You can check your own personal savings here.
An emerging trend
We are definitely seeing a trend emerge in the switch to electric cars.
There are customer incentives, like lower costs and lower emissions.
The truth is that EVs are quite a lot cheaper to run, and cheaper to maintain.
You see, internal combustion engine (ICE) cars have a lot of moving parts. EVs have a motor, less moving parts and no liquids. It means less maintenance costs…and no more pesky oil changes…
At the same time, we are seeing an energy revolution.
We are seeing a change from centralised energy to consumers harvesting and storing their own electricity to power electric cars and their homes.
But, EV owners could see more savings because governments are also giving incentives to make the switch.
Take Norway for example.
More than half of their car sales last month where EVs. And they are looking for the trend to stay the same over the rest of the year.
Why are EV sales taking off in Norway? Well, the government is providing a lot of incentives for EV car owners. No tax, road tax, tolls, free parking…you get the gist.
Norway is looking to ban all petrol car sales and diesel vehicles by 2025.
Germany, one of the world’s leading car manufacturers, is also looking at eliminating ICE vehicles, and increasing their EV fleet.
According to Bloomberg, they estimate that they will need 10 million electric cars to reach their 2030 emissions target. That is about 20% of their total cars on the road today.
Governments are pushing the trends with incentives
Even German car makers are looking at the trend and changing.
Here is something from Teslarati:
‘The auto industry saw something historic happen this past week in Germany. In a rare act of unity, the leaders of the country’s big three Automakers; Volkswagen CEO Herbert Diess, Daimler CEO Dieter Zetsche, and BMW CEO Harald Krüger, all agreed that the future of German auto is the electric car. Over the next decade, each CEO would be pushing their respective companies to shift and embrace the idea of an electrified fleet.[…]
‘A LinkedIn post written by the Volkswagen CEO outlined his points as follows. “In order to stop global warming, there is no way around the Paris climate targets. To do this, the car must become cleaner as soon as possible and CO2-free by 2050 at the latest. E-mobility is the only technology that is feasible from today’s perspective. I am convinced that if we concentrate all our energies on the leading technology of electromobility, we will achieve both: the car will become cleaner in the short term and CO2-free in the long term. And the car country Germany will be the world leader in driving the future,” Diess wrote.[…]
‘While Germany’s commitment to electromobility is undoubtedly impressive, it should be noted that the developments and milestones of the electric motor and electric car batteries over the past years are the catalysts that initiated this change. Electric mobility advocate Auke Hoekstra notes that electric motors are pretty much the only superior alternative to the internal combustion engine today, in the way that they are smaller, lighter, cheaper, practically maintenance-free, and around four times more efficient.’
Australia is also looking to get in on the trend.
There is already a push to invest into more infrastructure for EV cars like fast charging stations.
Labour is looking at making big changes if they win the election. As The Guardian reports, labour is looking at setting a target of 50% new car sales by 2030, with incentives for businesses to switch to electric vehicles.
Consumers, governments and car makers are all on the same page. All interests aligned to switch to an electric car future.
Editor, Markets & Money