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Is the electric vehicle race over before it’s truly begun?

Published

12 months ago

10 August 2023

Liam

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Is the electric vehicle race over before it’s truly begun?

By Jeff Gibbs

Is the electric vehicle race over before it’s truly begun? That certainly looks to be the case if you dive into the sales data for the first six months of 2023, with Tesla so far ahead of the competition it’s hard to see the catching up anytime in the near future.

Tesla has sold 25,577 cars in the first half of 2023, which accounts for 76.5 per cent of the entire electric vehicle market. The closest challenger is China’s BYD with its Atto 3 selling 6196 examples in the first six months of the year.

In contrast, the ‘big three’ German luxury brands – Audi, BMW and Mercedes-Benz – have managed to sell a total of 2030 EVs in the first half of the year, despite offering 10 different models across the respective brands.

Which puts Tesla in the box seat as the automotive world begins to move to an electric future. Any car maker will tell you it’s easier to keep a customer within your brand than it is to attract them in the first place. Which means, as Tesla’s sales continue to grow and it attracts more and more customers, it puts itself in a better position to sustain this success into the future.

Assuming the American brand can provide a positive experience to its owners, there’s less reason for them to look outside the brand and stick with Tesla as long as they can continue to provide a suitable model to move into.

It’s the same principle that allowed the likes of Toyota, Hyundai and Kia to grow over the last few decades.

The Hyundai Excel is perhaps the best example of this idea, with the small car once a popular and affordable choice for buyers looking for their first new car. Hyundai was able to give enough of those buyers a positive ownership experience that many have likely stuck with the brand over the years and allowed it to grow and become more premium.

The Tesla Model Y has the potential to have a similar impact on the luxury market. It will be the first EV for most of their customers and if it’s relatively trouble-free then those buyers will be less likely to try another brand, even if it’s Mercedes-Benz or BMW.

Tesla Model Y Electric Vehicle.

You could argue it’s already happening, with Mercedes offering a strong line-up of EVs, with the EQA, EQB, EQC, EQE and EQS already available in Australia as alternatives to Tesla’s offerings, but those five models have only managed 1114 total sales this year.

Audi is in an even trickier position, with its electric options limited to the high-end Q8 e-tron and e-tron GT, resulting in just 273 sales. The four-ring brand’s local management has made it clear in the past that it sees the Q4 e-tron as its best chance at a volume-selling EV, but so far hasn’t locked in a timeframe for when that car will even go on sale in Australia.

While these more-established brands are confident that their aftersales and ownership experiences with customers will help lure buyers away from Tesla eventually, that is looking like an increasingly risky strategy as sales of the Model 3 and Model Y continue to remain so much stronger than the competition.

Has the Electric Vehicle Race Already Been Decided?

The first half of 2023 has seen Tesla dominate the electric vehicle (EV) market to an extent that raises doubts about its competitors catching up anytime soon. Tesla’s sales figures are nothing short of remarkable, with the American automaker selling an impressive 25,577 EVs, representing a staggering 76.5 percent of the entire electric vehicle market. In comparison, China’s BYD, the closest challenger, managed to sell 6,196 examples of its Atto 3 during the same period.

Even the ‘big three’ German luxury brands – Audi, BMW, and Mercedes-Benz – collectively offered 10 different EV models but only achieved a total of 2,030 sales in the first six months of the year. This glaring difference in sales numbers puts Tesla in the driver’s seat as the automotive world transitions towards an electric future.

One critical factor contributing to Tesla’s dominance is the brand loyalty it has garnered. As any car manufacturer knows, it is much easier to retain existing customers than to attract new ones. Tesla’s growing customer base means that more and more buyers are likely to remain loyal to the brand, provided the company continues to deliver positive ownership experiences.

China’s BYD Electric Vehicle.

This strategy of fostering customer loyalty has been successfully employed by automakers like Toyota, Hyundai, and Kia over the past few decades. A prime example is the Hyundai Excel, which once captivated buyers with its affordability and reliability. Hyundai’s ability to provide a positive ownership experience resulted in many customers sticking with the brand, contributing to its growth and evolution into a more premium automaker.

Similarly, the Tesla Model Y has the potential to revolutionize the luxury market. Being the first EV for most of its customers, if it proves to be trouble-free, these buyers are likely to remain loyal to the brand, even when comparing it to established luxury brands like Mercedes-Benz and BMW.

Despite Mercedes offering a strong line-up of EVs, including the EQA, EQB, EQC, EQE, and EQS, these alternatives to Tesla’s offerings have managed only 1,114 total sales in Australia this year. Audi, too, finds itself in a challenging position with limited electric options like the high-end Q8 e-tron and e-tron GT, resulting in just 273 sales. Although Audi’s management sees the Q4 e-tron as a potential volume-selling EV, they have yet to announce a definite timeline for its release in Australia.

Established brands remain confident in their ability to entice buyers away from Tesla with their aftersales and ownership experiences. However, this strategy is becoming increasingly risky as Tesla’s Model 3 and Model Y sales continue to outperform the competition by a significant margin.

In conclusion, Tesla’s dominance in the EV market during the first half of 2023 has given it a considerable advantage as the automotive industry shifts towards electrification. The brand’s loyal customer base and consistently strong sales indicate that Tesla is well-positioned to sustain its success into the future. As other automakers strive to compete, they must address the challenges posed by Tesla’s brand loyalty and continually evolving electric offerings. Only time will tell if Tesla’s lead can be narrowed or if the race has indeed been decided before it has fully begun.

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Workforce barriers tripping up young Australians and how to overcome them

Published

1 day ago

25 July 2024

Liam

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Workforce barriers tripping up young Australians and how to overcome them

Only half of young people feel confident in achieving their current or future career aspirations due to workforce barriers, new research has found.

This, coupled with a youth unemployment rate of 9.7% as of May 2024², underscores the critical need for targeted support and resources to equip young individuals with the foundational skills essential for navigating today’s complex job market.

For young people, particularly those from marginalised groups like Indigenous youth and women, there are additional barriers that exacerbate the challenge in securing employment and advancing careers including things like systemic inequities, limited access to quality education and training as well as pervasive social biases.

For example, recent studies have shown that 37% of women working in predominantly male environments report experiencing gender-based competence challenges³.

Employment services provider atWork Australia is addressing these challenges head-on by spotlighting the empowerment of young talent in preparation for World Youth Skills Day on 15 July, providing comprehensive support to young individuals, ensuring they have the necessary skills and assistance to confidently enter the workforce.

Over the last year, atWork Australia has supported over 7,300 young people (aged 25 years or younger) on their individual employment journey across metropolitan and regional Australia. Trends show that hospitality, warehousing and retail are the most appealing industries for young people to seek out. atWork Australia celebrates and applauds youth transition to all industries as each individual embarks on their employment and career journey.

One inspiring example is atWork Australia client, 18-year-old Yasmine, a determined Indigenous young woman from Mount Druitt, New South Wales. Through atWork Australia’s guidance, Yasmine defied odds and successfully entered the traditionally male-dominated mechanical industry.

Yasmine’s journey, starting from when she left school in Year 10, it reflects her resilience in overcoming significant challenges. Initial barriers included securing additional work hours and attending appointments due to financial constraints. Yasmine found crucial support from atWork Australia for emotional, mental and educational barriers as well as practical needs like food vouchers and travel costs⁴.

“atWork Australia has been a tremendous support for me,” Yasmine shared. “They kept me informed about job opportunities and reached out to discuss potential roles. It was empowering to be able to communicate my interests and preferences directly to them.”

Navigating her way through interviews and her initial week on the job, Yasmine benefitted from the guidance of atWork Australia’s Indigenous Connections team, who provided essential mentorship and support.

Despite encountering scepticism and doubts as a woman in a male-dominated field, Yasmine persevered, impressing her colleagues with her skills and determination.

“At 18, there were moments of self-doubt, especially being an 18-year-old female in this industry, but with atWork Australia’s unwavering support, I gained confidence and pushed through,” Yasmine reflected.

atWork Australia will continue to assist Yasmine until she feels fully settled in her new role and is committed to supporting her journey towards achieving her long-term goal of saving for a house deposit.

Yasmine’s story exemplifies the transformative impact of tailored support and mentorship in empowering young individuals to thrive in challenging environments.

atWork Australia is dedicated to providing comprehensive support to young individuals, ensuring they have the necessary skills and assistance to confidently enter the workforce.

To find out more about atWork Australia’s support services, please visit: www.atworkaustralia.com.au. Additionally, you can listen to any of the podcasts from the ‘Candid Conversations with Shaun Pianta’ podcast series here where atWork Australia Brand Ambassador and Paralympian, Shaun Pianta, speaks about his employment journey, following a life-changing holiday.

For more business news, click here.

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Business News

Scrap Metal Company and Directors Fined for Mass Limit Breaches

Published

1 day ago

25 July 2024

Liam

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Scrap Metal Company and Directors Fined for Mass Limit Breaches

A Melbourne-based scrap metal company and its three directors have been fined for failing to manage legal mass limits after an investigation uncovered 69 mass limit breaches over two years.

The National Heavy Vehicle Regulator (NHVR) Safety and Compliance Officers intercepted one of the company’s heavy vehicles in April 2021, discovering it was loaded at 120.42% of the prescribed mass limit.

Subsequent investigations revealed 69 mass limit breaches, including 24 severe risk breaches, defined as loads at 120% or more of the mass limit. The company pleaded guilty to a Category 1 offence under the Heavy Vehicle National Law (HVNL) and was fined $180,000.

The three directors also pleaded guilty to failing to exercise due diligence and ensure transport safety, receiving fines of $8,500, $7,000, and $7,000, respectively.

NHVR Acting Director of Prosecutions Elim Chan emphasised the dangers of overloaded heavy vehicles. “Heavy vehicles loaded beyond their prescribed mass limits pose serious public safety risks by compromising stability, steering, performance, and braking capability,” Ms. Chan said.

She stressed the importance of proper systems and training to ensure compliance with the HVNL and protect both drivers and the public.

The NHVR offers online tools and guides to assist with loading requirements. For resources, visit NHVR Loading Guides View the resources.

For more information on NHVR prosecutions, visit NHVR Prosecutions.

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Business News

In June Australian unemployment dropped to 8.3%; lowest unemployment since September 2022

Published

1 day ago

25 July 2024

Liam

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In June Australian unemployment dropped to 8.3%; lowest unemployment since September 2022

In June 2024, Australian ‘real’ unemployment dropped 62,000 to 1,307,000 (down 0.4% to 8.3% of the workforce). This is the lowest rate of unemployment for nearly two years since September 2022 although overall employment is virtually unchanged above 14.3 million.

Although unemployment decreased in June as people left the workforce, under-employment increased by a similar amount in the month, up 65,000 to 1,403,000. Taken together overall unemployment and under-employment in June is virtually unchanged at 2.7 million (17.3% of the workforce).

The June Roy Morgan Unemployment estimates were obtained by surveying an Australia-wide cross section of people aged 14+. A person is classified as unemployed if they are looking for work, no matter when. The ‘real’ unemployment rate is presented as a percentage of the workforce (employed & unemployed).

Overall employment reaches virtually unchanged in June near record high above 14.3 million:

Australian employment was virtually unchanged at 14,307,000 (down 3,000) in June. There was a shift to more part-time employment though with 4,941,000 (up 72,000) now employed part-time while full-time employment was down 75,000 to 9,366,000. Increasing part-time employment is often associated with a rise in under-employment – which increased by 65,000 in June.

Unemployment decreased for a second straight month in June to its lowest for over a year:

In June 1,307,000 Australians were unemployed (8.3% of the workforce, down 0.4%), a decrease of 62,000 from May and the lowest level of unemployment for over a year since May 2023 (1,258,000). It is also the lowest rate of unemployment for nearly two years since September 2022 (8.1%).

The fall in unemployment was driven by fewer people looking for full-time work, down 131,000 to 469,000 while there was an increase in those looking for part-time work, up 69,000 to 834,000.

Overall unemployment and under-employment was virtually unchanged at 17.3% in June:

In addition to the unemployed, a further 1.4 million Australians (9% of the workforce) were under-employed, i.e. working part-time but looking for more work, up 65,000 from May. In total 2.7 million Australians (17.3% of the workforce) were either unemployed or under-employed in June.

Comparisons with a year ago show rapidly increasing workforce is driving employment growth:

The workforce in June was 15,610,000 (down 65,000 from May, but up 404,000 from a year ago) – comprised of a near record high 14,307,000 employed Australians (virtually unchanged from a month ago but up a massive 673,000 from a year ago) and 1,303,000 unemployed Australians looking for work (down 62,000 from a month ago and down 269,000 from a year ago).

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