More than 17,000 cars are at risk of being taken off the road if owners have not replaced their faulty Takata Alpha airbags under a compulsory recall.
The New Zealand Transport Agency announced from early next year, vehicles that have the faulty Takata Alpha airbags will automatically fail warrant of fitness (WoF) inspections.
Kane Patena, NZ Transport Agency regulatory general manager, said the new measure is about protecting the safety of New Zealand drivers and passengers.
"Under the provisions of the compulsory recall for Takata Alpha airbags announced last year, all affected vehicles are legally required to be remedied by 31 December 2019.
"This is potentially a significant safety issue and as the vehicle safety regulator we now need to look at new approaches to ensuring the remaining vehicles have their airbags replaced.