New car sales in New Zealand jumped by 26 per cent in June compared to the same month last year. According to the Motor Industry Association (MIA), a new Government policy is likely the reason behind the rise.
The “Investment Boost” policy, announced in the May 2025 Budget, lets businesses claim 20 per cent of the cost of new assets, like vehicles, as an immediate expense. The remaining 80 per cent can be claimed through regular depreciation rules. The policy started on Budget day, 22 May.
The MIA says this change is encouraging more businesses, rental companies, and even private buyers to make vehicle purchases they may have been putting off.
Sales Lift Across the Board
A total of 11,862 new passenger and light commercial vehicles were registered last month. That’s up from 10,251 in May, and way ahead of June 2024’s total of 9406. It’s also the second-best month of 2025 so far.
Cars and SUVs made up the biggest portion, with 8245 registrations. That’s higher than both May’s 6817 and June 2024’s 6059. Toyota’s RAV4 led the pack with 781 sales, followed by the Mitsubishi ASX (482) and Kia Seltos (444).
Light commercial vehicles also performed well, reaching 3204 registrations—up from 3016 in May and 2753 in June last year. The Ford Ranger remained the country’s top seller with 948 units, with the Toyota Hilux close behind at 853. The BYD Shark 6 came in third with 413 units, boosted by a special brand promotion.
Electric Vehicles on the Rise Again
Tesla led the electric vehicle (EV) market with 407 cars registered. The company’s updated Model Y arrived early in June, and most units had already been spoken for.
EV interest is clearly rebounding, with 1073 fully electric vehicles registered in June—the best result since the Clean Car Discount ended in December 2023. Plug-in hybrids also saw a lift, with 912 registered, and standard hybrids hit 3152.
Government Policy Seen as a Key Driver
MIA chief executive Aimee Wiley said the Government’s new investment policy has played a big role in the recent growth.
“The June quarter ANZ Business Investment Survey showed central Government policy as a key driver for firms planning to invest, and this likely refers to the Investment Boost,” she said.
“And a MYOB survey of more than 500 small and medium sized businesses in May put passenger vehicles including cars, vans and Utes at the top of the list of new assets to purchase. Further analysis of the June numbers shows the lift has come from rental, business and private buyers alike.”
Wiley also noted that many in the industry had been concerned about changes to fringe benefit tax (FBT), especially around double cab Utes. These vehicles are only FBT-exempt when used strictly for work, but there’s been a long-running debate about how that rule is applied.
Did you find this article interesting? Click the ‘heart’ button above to give it a ‘like’!
