August sales soar as Australia wakes up to big EV savings

Volvo car sales soared 46 per cent in August, with all electric vehicles making up almost half of the total.

Of 1,037 new registrations during the month, 504 were fully electric, led by the XC40 Recharge (382 units) with 122 C40 Recharge models also delivered.

Year to date, fully electric cars now make up more than a third of Volvo Car Australia’s total sales, putting the business on track to hit its target of selling only battery electric vehicles – or BEVs – by 2026.

The pick up in electric vehicles sales across Australia continues – with business drivers waking up to major savings. Latest Commonwealth Bank data underlines that shift, with the bank reporting EV financing up 235 per cent in the last 12 months.

Per Commbank’s General Manager Asset Finance, Chris Moldrich: “Electric vehicles were the fastest growing vehicle type last financial year and Australian businesses are set to play an outsized role in EV adoption across the country.”

The surge in EV loans is largely due to tax rules that make electric vehicles more attractive to company car drivers, even when finance costs are taken into account.

Provided electric cars cost less than $89,332, fringe benefits tax (FBT) does not apply. Which means EVs and plug-in hybrids tend to be more cost-effective for businesses that offer employees company cars as part of their package.

That’s because under salary sacrificing arrangements, both employers and employees can save thousands of dollars a year versus a petrol or diesel car following the federal government’s tax law changes late last year.

Over the course of a lease, the savings can run to tens of thousands of dollars – and that’s before fuel savings and longer service intervals are taken into account.

Find further detail on FBT here. For other electric vehicle incentives in Australia, state by state, this I-Roll article from July may be useful.