AA Road Safety spokesman Dylan Thomsen said the number of people being given alcohol interlock sentences was "embarrassingly small".
AA research had found half the drink drivers caught met the criteria for an interlock, which would have been about 10,000 people in 2014.
He said it was disappointing only a few of those offenders had interlock devices installed.
Mr Thomsen said alcohol interlocks were effective at preventing drink driving and the AA wanted all repeat offenders and those caught driving at twice the legal alcohol limit to receive an interlock sentence.
The AA also wanted more assessment and treatment for drink drivers. Many eligible for interlocks had serious alcohol problems, he said.
Many people thought they would never consider driving drunk because they knew it was dangerous. However, they lost their ability to make good choices after they drank too much, Mr Tomsen said. Some didn't want to drink drive and were glad to have an interlock to physically stop them.
Mr Thomsen said it was good interlocks were being used and helping drivers change their ways, however the AA wanted many more of them.
Gavin Foster, owner of interlock provider Smart Start, said interlocks had been used around the world for 25 to 30 years and were one of the most effective means of reducing recidivist drink driving.
"It's not only keeping them safe from what might happen, it's keeping everyone else safe as well. So it's just another potential drink driver off the road, you might say, who could be out there causing carnage," said Mr Foster.
He heard stories every week about interlocks having changed people's lives and the ways they thought about drink driving.
Users currently had to pay for interlocks and Mr Foster suggested the Government offer some assistance.
"If someone gets a bracelet put around their ankle and they go on a home detention sentence, well it's 100 per cent Government funded. If someone gets sent to prison it's 100 per cent Government funded. If someone gets issued an interlock sentence at the moment, it's 100 per cent user pays."
According to the NZTA, offenders can apply for a zero alcohol licence after holding an alcohol interlock licence for at least 12 months. They need to hold their zero alcohol licence for three years before they can apply to reinstate their standard licence.
NZTA figures show 174 people progressed from alcohol interlock licences to zero alcohol licences between the introduction of alcohol interlock sentences in September 2012 and the end of last year.
According to the Ministry of Justice, nine people have been convicted of alcohol-related driving offences after being issued with an alcohol interlock licence. Eight were convicted last year including five from Auckland, and one each from Hastings, Christchurch, Whangarei. One was convicted the previous year in Greymouth.