While the world transitions to electric vehicles at cruising speed, Australia hasn't touched the accelerator.
But with emissions targets looming, the federal government wants to speed things up – and it's exploring options to make electric vehicles more affordable.
"We want Australians of all wealth, of all incomes to have choice," Climate Change and Energy Minister Chris Bowen said.
"In other countries there are cheaper electric vehicles available.
"Our policy settings haven't encouraged that and so we want to have that discussion with the Australian people."
Last year, less than two per cent of new car sales in Australia were electric, compared with nine per cent globally.
Currently, the cheapest electric vehicle on the Australian market is $44,000, and the most popular – the Tesla 3 – has a price tag of $65,000.
Infrastructure and Transport Minister Catherine King said the price barrier was a problem unique to Australia.
"We know that without any government work looking at what the incentives might be, what the barriers might be [and] how we can actually help Australians make decisions, it'll be business as usual," she said.
How do fuel efficiency standards work?
This week, the Albanese government launched a consultation paper for the country's first National Electric Vehicle Strategy, inviting submissions on how to make electric vehicles more affordable, expand uptake and reduce emissions.
The Australia Institute's climate and energy program director, Richie Merzian, said if we pull the right levers, we could attract electric vehicles in Australia at the same price as their internal combustion engine vehicle alternatives.
"The main lever, which car manufacturers are telling us, is a robust fuel efficiency standard," he said.
"We need to mandate a minimum level of efficiency for our vehicles so that manufacturers are compelled to give us their best, and the cleanest, and their most affordable vehicles.
"These manufacturers are penalised if they don't send their cleanest, their best electric cars to other markets, whereas they can send any old vehicle here to Australia — that's what they've been doing for the last couple of decades."
Electric Vehicle Council chief Behyad Jafari agreed that vehicle fuel efficiency standards were key to increasing the uptake of electric vehicles in Australia.
"It's essentially a rule book to car manufacturers that says you have to come and bring your most fuel efficient, as well as the technology like electric vehicles, and make them available to Australian consumers," he said.
Australia is the only developed country, apart from Russia, without fuel efficiency standards in place, yet an estimated 16 per cent of Australia's total emissions were from road use.
New tax measures, more charging stations and investigating options to manufacture electric vehicles and batteries domestically were also expected to be included in submissions.
Can China satisfy the demand?
So, is supply for electric vehicles in Australia meeting the demand?
Australians' interest in electric vehicles spikes when fuel prices rise, according to editor-in-chief at CarSales, Mike Sinclair.
He said there was a surge of interest when fuel prices in Australia soared in March.
"There was a significant increase in searches in electric vehicles, to the point where for a couple of days in March around a quarter of searches on car sales were for electric vehicles," he said.
Fuel prices were set to increase again over the coming months, following the end of the six-month tax cut made by the Coalition government six months ago to ease cost-of-living pressures.
However, with major European car manufacturers refraining from supplying the Australian market, China could be in line to become a major force in Australia's electric vehicle market.
The Chinese-made MG 4 is set to reach Australian streets early next year, and could be the first electric vehicle in Australia to cost less than $40,000.
Chinese manufacturers BYD and Great Wall have also planned to target Australia with their electric vehicle offerings over the next 12 months.
Marketing specialist at RMIT, Professor Simon Pervan, suggested Australia was warming to Chinese-made cars.
"We're getting used to quality products coming out of China, and that includes vehicles," he said.
"I don't see that as a barrier now, particularly when you've got something as important as an electric vehicle, which functionally is a game changer, so that takes the emotion out for a while.
"The value and the function of an electric car will supersede the country-of-origin effect."
Submissions for the National Electric Vehicle Strategy will close by the end of October, with the government expected to release its final strategy by the middle of next year.
