Oil prices remain an important factor in the growth of the Australian ebike market

Petrol prices hit a record high in the Australian city of Brisbane at the end of September and remain well above $2 a litre nationwide. High gasoline prices make car travel a costly burden, and also need to pay high car insurance and maintenance costs, the increase in travel costs has become a restrictive barrier to the use of cars, many Australians began to find a new way to travel instead of cars, and the cheaper and more convenient electric bicycles relative to cars have become a new choice for many Australians.

Market choice under multiple choices
Research by the Australian Automobile Association found that in 2022, transport costs for households in several provincial cities in Australia increased by 8.8%, and transport costs in remote areas increased by 10.1%, far exceeding the overall inflation rate of 6%, and the rise in transport costs directly led to a decline in car use.
Francesco, an office worker from Australia, said she currently uses e-bikes for her daily commute, using car-sharing companies in addition to her own car, and subscribing to a $59 per week e-bike from rental company Lug+Carrie.

Sales of electric vehicles, largely unaffected by soaring petrol costs, have also increased significantly compared to the same period last year, with pure electric vehicle (EV) sales in Australia more than tripled in the first nine months of 2023, but barriers to entry are high, with electric vehicle base prices starting at $40,000 and the second-hand market just taking off. Relatively affordable e-bikes have become a low-cost alternative to gas-guzzling cars, and with the growth of e-bike usage there have been a number of rental companies offering cheaper options for short-term users.

The electric bicycle market continues to grow
Since 2017, when states and cities passed uniform laws on the use of e-bikes, the Australian e-bike market has begun to grow steadily, with sales approximately quintupling to more than 100,000 e-bikes sold in 2022, with particularly significant growth in the home and freight markets, after abandoning car travel. Sales of e-bikes continue to grow as demand for models with child seats increases.

In Australia, the price of an electric bicycle entry-level model is about $2,000, the price of a freight model that can be used for family travel is about $5,000, the price of an advanced model can reach $20,000, and some high-end models are expensive, but compared with the car, not only the purchase price of the product is lower, but the cost of use is also quite low. Bikes cost about 15 cents to charge on average, don't need to pay parking fees, and are cheaper to operate than cars or public transportation.

Nevertheless, cars are still the best choice for long-distance travel, and e-bikes are most popular in suburbs between 5km and 15km from the central business district, becoming one of the main ways for people to diversify their travel.
In addition to economic considerations, leisure exercise is also the main reason for people to start cycling, and the sports and fitness properties of bicycles allow the use of scenarios to be expanded beyond transportation.

Calls for improved infrastructure and the introduction of subsidies
Australia has strong subsidies for electric vehicles. The government hopes to reduce carbon emissions by encouraging the use of electric vehicles. Queensland raised the subsidy for electric vehicles from 3000 Australian dollars to 6000 Australian dollars in April this year, and the Australian Federal Government issued a tax exemption policy to cancel the 5% import tariff. However, there is no similar subsidy policy for electric bicycles, and compared with Europe and the United States, Australia lacks corresponding subsidies for electric bicycles.

With the growth in the popularity and use of electric bicycles, the public for the construction of bike lanes and calls for subsidies are also increasing, the Queensland government Transport and Main Roads spokesman said: "We are not currently considering rebates for electric bicycles, but from 2022, $268.8 million will be spent on infrastructure." Including bike lanes, shared roads and Bridges, the government is studying future incentives to encourage trial and purchase of e-bikes. "The Norwegian study studied the impact of a subsidy scheme in Oslo on purchase intentions, and nearly half of owners said that whether or not the subsidy greatly influenced their decision. This also proves that subsidies can directly stimulate the growth of market sales.

Tasmania is the first region in Australia to offer an e-bike subsidy program, and the government said in September this year that it would invest $1.2 million to subsidize the purchase of e-bikes, e-scooters and electric vehicles by consumers. The options available for e-bike programs include a try before you buy program, purchase assistance and direct subsidies, according to the Micro-Transport Report. The form of the subsidy will be announced in November, and Tasmania's move also opens the floodgates for e-bike subsidies in Australia.

Compared with Europe and the United States, the Australian electric bicycle market is lagging behind, but the potential is great, the current penetration rate of electric bicycles is only about 10%, with the government's improvement of bicycle infrastructure, and the provision of product subsidies, the development of electric bicycles will also be further growth, the future Australia or become an important growth market for global electric bicycles.

Sources: GUARDIAN, BRISBANETIMES