10 May 2021
Posted in Automotive
Subscription model to make electric vehicles more accessible in Australia, says GlobalData
Following the news that global battery giant Sonnen GmbH has launched electric vehicle subscription service SonnenDrive in partnership with shared mobility brand Carbar in Australia;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers her view:
“A vehicle subscription model that encompasses everything right from registration, maintenance, insurance, servicing and roadside assistance will help overcome major challenge to EV adoption i.e., high acquisition cost. Customers can access an electric vehicle at a straightforward weekly/monthly subscription fee and limited liabilities.
“Australia presently has very low uptake of electric vehicles with market share limited only to 0.7% of the total new cars sold in the country as of 2020. Inconsistent policies and lack of concrete EV benefits such as zero import taxes, sales tax exemptions and rebates are the key factors sabotaging the growth of EVs in Australia. In such a situation where there is no major demand push from the government, innovative business models such as subscription act as a catalyst.
“Another major benefit that the subscription model offers is that the customers get to choose from a wide range of EV models and can easily charge their cars at home using regular charging.
“SonnenDrive follows the trail of Australia’s energy giant AGL and shared mobility player Blinker (now Loopit), which announced their electric vehicle subscription service last year. The market is expected to witness more players offering the electric vehicle subscription in the near-term. However, subscription services may make EVs more accessible to customer but cannot be the only ingredient for boosting EV demand in Australia. Significant government efforts through attractive policies, incentives and strong charging infrastructure are much needed for success of EVs.”