EV, total new car sales stalled badly in November

Year-to-date EV sales are at 5861 compared to 18,164 by this point in 2023. Image / 123RF

The tough year for new car sales continued in November.

There was a total of 12,170 new vehicle sales, 16.2% (or 2349) lower than November 2023, according to Motor Industry Association figures.

Year-to-date sales were down by 14.9% (or nearly 21,000 vehicles) compared to 2023 and 22.5% lower than 2022.

The MIA has blamed the slow economy, high interest rates and months-long stock-ordering lead times as dealers adjust to shifts in Government policy.

One policy change involved a watering down in July of the Clean Car Standard, a complicated system of charges on imports of higher emission vehicles, distinct from the now-extinguished Clean Car Discount for buyers.

Despite aggressive discounting across some makes and models, the EV slump continued.

There were 700 sales of battery electric vehicles (5.8% of November sales) in contrast to 2685 in November 2023, when EVs represented nearly one in five new car sales.

Electric car sales have struggled all year after the removal of the Clean Car Discount of up to $8625 at the end of 2023 and the introduction of $76 per 1000km (plus $12.44 admin) Road User Charges from April 1.

More pain could be on the way.

ACC Minister Matt Doocey is consulting on the removal of an ACC levy discount for electric vehicle owners, which he says has cost $9.8m over the past three years.

Year-to-date sales of pure EVs sit at 5861 vehicles compared to 18,164 by this point in 2023.

Sales of plug-in-hybrids, hit by both petrol tax and Road User Charges, albeit at the lower rate of $38 per 1000km, have also collapsed.

Sales of petrol and diesel vehicles are also down, if more modestly, at 7007 compared to 7233 in November 2023.

Non-plugin hybrids, which escape RUCs, are a bright spot, with sales rising to 4136 from their year-ago 3423.

The pick-up/chassis cab 4x4 category continued its relative post-ute tax buoyancy, with 1530 sales compared to 1397 a year ago.

Year-to-date, there have been 20,401 sales in the category compared to 19,491 by this time last year.

Internal combustion engine vehicles continued their comeback after the clean car discount and ute tax, with their year-to-date market share rising from 62.0% to 68.6%.

While the removal of the ACC levy discount for EV owners will be a modest hit - some $40 per year - next to the clean car discount, RUC and clean car standard changes, they were “poor timing” according to Kirsten Courson, a spokeswoman for EV-advocacy group Drive Electric.

“It’s been spectacularly hard for the sector to adjust,” Courson said.

“We are seeing dealerships close, we are seeing new low emissions vehicles not being introduced into the market any more, and we are seeing some vehicles being run out and will never come back into our market again.”

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.