Electric vehicles (EVs) (and other zero/ low emission vehicles) are key to decarbonising road transport. With support from government policies to encourage adoption, EVs are gaining popularity as a sustainable and cost-efficient alternative to traditional Internal Combustion Engine (ICE) vehicles in Australia. As EVs become more accessible, they will provide numerous advantages, such as decreased emissions, lower fuel expenses and enhanced comfort. With the growing availability of EVs, the transport sector in Australia is starting to acknowledge their potential to transform the way we travel while reducing our carbon emissions.

EVs have the potential to significantly alter travel behaviour by making private vehicle travel more sustainable and cost-effective. EVs may also offer a smoother and quieter ride, making them more comfortable for passengers. If not managed appropriately, EVs have the potential to undo years of transport and land use policy aimed at reducing private vehicle mode share.

To gauge the potential impact of EVs on travel behaviour, KPMG developed future scenarios of EV uptake using the KPMG Electric Vehicle Insights and Analytics Platform (EVIAP) and estimated the transport network and economic impact of these scenarios on transport users. KPMG’s analysis indicates that across Australia, economic benefits of around $280 billion in present value over a 50-year period could be realised through the uptake of EVs. However, the analysis also found that the resulting increase in road network congestion could reduce these benefits by around $80 billion, bringing the benefits down to an estimated $200 billion.