Electric cars are set to be cheaper than similar petrol cars within six years, but a new report says changes are needed to kickstart the industry in Australia.
A federal inquiry into electric vehicles, which reported on Wednesday, found drivers are being put off buying them because of high up-front costs, concerns about driving range, lack of recharging facilities and limited model availability.
"Australian governments should prioritise the development of a national electric vehicle strategy," the 200-page report found.
The report also found advances in lithium-ion batteries are expected to see the price of electric vehicles fall, meaning they could be up to 15 per cent cheaper than equivalent vehicles by 2025.
But independent Senator Tim Storer said the report should have gone further to drive the industry's growth in Australia.
"Seizing this opportunity does not have to come at great cost," he said.
Greens Senator Janet Rice said Australia was lagging behind the world and stronger action was needed.
"Both major parties say the right words about electric vehicles when it suits them, but when it comes to actually getting behind policies and incentives that will support electric vehicle uptake they are missing in action," she said.
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