EV sales stalled in March for the third month in a row since the Clean Car Discount was eliminated. Light commercial sales were also down, with the "ute tax" gone but high interest rates persisting. Pictured is the Tesla South showroom in South Auckland. Photo / Dean Purcell
EV sales stalled in March for the third month in a row since the Clean Car Discount was eliminated. Light commercial sales were also down, with the "ute tax" gone but high interest rates persisting. Pictured is the Tesla South showroom in South Auckland. Photo / Dean Purcell
New vehicle registrations for March fell by 27.4 per cent to 11,616 versus the same month last year, and were 44.7 per cent down on March 2022, according to Motor Industry Association (MIA) figures.
EV and plug-in hybrid sales were again just a fraction of their 2023 levels. The end of the Clean Car Discount (which has existed in its current form since July 1 last year) and the introduction of road-user charges for electric vehicles from April 1 has seen EV sales dive.
But the overall market was very soft, with total light passenger vehicle sales down 34.9 per cent on March 2023.
MIA chief executive Aimee Wiley said higher interest rates have dampened consumer spending considerably.
The end of the “ute tax” again failed to ignite growth in light commercial sales - although with a 6.5 per cent dip, the segment did see less of a slowdown than other segments.
The top five models for March were the Ford Ranger (1005 units), followed by the Mitsubishi Triton (681), Toyota HiLux (611), Nissan Navara (292) and Toyota HiAce (107).
EV sales a fraction of 2023 levels
The top-sellers in the much-contracted EV market were the Tesla Model 3 (125 units), followed by the Tesla Model Y 74, MG 4 (42), Volkswagen ID.4 (28) and BYD Dolphin (20).
For March, 9.28 per cent of new passenger cars were EVs, down from 27.2 per cent for all of 2023, according to an analysis of New Zealand Transport Agency Waka Kotahi (NZTA) data by EV lobby group Drive Electric.
Light petrol and diesel vehicle sales were up, but EV and commercial sales were down, pushing the whole market into negative territory. Source / MIA
In the one category of electric-capable vehicle that remains exempt from RUCs, so-called “mild hybrids” or those without a plug, total sales of 2577 were slightly up on March 2023′s 2551. The top-sellers - all Toyotas - were the Rav4 (790 units), followed by the Corolla Cross (181), Yaris Cross (147), Yaris (134) and Corolla (112).
Plug-in hybrid sales halved, with the Mitsubishi Outlander (31 units) and the Mini Countryman (30) the top-sellers.
At the last minute, the Government reduced the RUC rate for plug-in hybrids from $58 to $38 per 1000km, but some PHEV owners complain they are being taxed twice (RUCs plus fuel tax) despite having small and often degraded batteries that see them mostly using petrol.
NZ could lose access to some models
“There is a need for measures to encourage EV demand, otherwise we risk losing models and volume to other RHD [right-hand-drive] markets, which will make a recovery slow,” Drive Electric chairwoman Kirsten Corson said.
“EVs remain the future for automotive technology globally, but we risk being left behind if we don’t encourage uptake here. A petrol/diesel vehicle bought today will be on our roads for the next 15 to 20 years.”
Corson said our policy makers need to look at the bigger picture, including the balance-of-payments impact of importing $8 billion to $9b in fossil fuels per year.
‘Unfair’ RUCs
Drive Electric does not oppose EVs losing their RUC exemption, but says the new playing field is tilted in favour of petrol vehicles.
Analysis by the group plus the Motor Trade Association, AA, MIA and other industry groups said the owner of a fully-electric vehicle would pay 95 per cent more in RUCs than a non-plugin hybrid driver pays in fuel excise duty (aka petrol tax), and 23 per cent more than a similar petrol vehicle.
And in December last year, Concept Consulting research for Drive Electric said the removal of the Clean Car Discount would see approximately 100,000 fewer EVs on the road by 2030 - and non-emission economic costs (primarily petrol and diesel imports) of $900 million through to 2050.
The removal of both the buyer-focused Clean Car Discount and the importer-focused Clean Car Standard would see 350,000 fewer EVs on our roads by 2030, Concept Consulting said.
In the event, Transport Minister Simeon Brown chose to retain the Clean Car Standard, which penalises importers for each high-emission vehicle they bring into the country, but also allows them to balance that out by earning credits for each low-emission vehicle they import.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
