Dollar forces drivers to rethink

Car and fuel prices driven up by the decline of the New Zealand dollar will force changes in community attitudes about the size of the vehicles they drive, says Toyota New Zealand chairman Bob Field.

"Over the past year there has been a change in the value of used cars," he says. "Large ones are losing their value faster and faster, while smaller, more fuel-efficient ones are holding their value."

Field says fuel efficiency is a major issue in the used-car market, where buyers usually had less ability to meet ever-increasing petrol prices.

"Although rising fuel prices are encouraging people to reduce fossil fuel consumption in the short term, some additional Government intervention will still be required for New Zealand to meet its long-term Kyoto emission (the United Nations framework for climate change) targets," he said.

"Once the initial consumer response to higher fuel prices has been digested, there is a strong case for the Government to revisit the recently abandoned carbon tax proposal."

Field and other executives in the automotive industry are pushing for a carbon tax at fuel pumps in an effort to coax buyers into more fuel-efficient vehicles.

The trade-off for the higher pump price would be a tax rebate - motorists would get back from the taxman much of what they paid in carbon tax at the pumps.

Field believes the higher pump price would change driving habits and buying decisions.

"Drivers of gas-guzzlers should be encouraged to think of alternative choices or be prepared to pay more for the environmental damage that they are causing." he said last year.

New vehicle sales in March were the highest since September last year and mirror demand for more fuel-efficient vehicles.

The 9743 sales - cars and commercials - were up 25 per cent on February, according to Land Transport New Zealand.

Sales of 25,314 for the March quarter are more than 5 per cent ahead of those for the same period last year.

Toyota New Zealand has opened up a big early lead over its competitors, accounting for 20.4 per cent of all new vehicles sold in the first three months, ahead of Holden with 14.2 per cent and Ford in third place with 12.7 per cent.

Then came Honda with 7.7 per cent, Nissan with 7.5 per cent, Mitsubishi with 5.7 per cent and Mazda with 5.5 per cent.

Sales of all other makes of new vehicles accounted for 26.3 per cent of the market.

Toyota's new vehicles general manager Steve Prangnell said a major factor in his company's rising sales was the availability of smaller fuel-efficient vehicles, which were becoming more popular as rising fuel prices begin to bite.