New vehicle registrations in New Zealand rose to 14,240 in October, up 13.5 per cent compared to the same month last year. It is the fourth consecutive month that registrations have risen, pointing to a market that is slowly finding its footing after a long period of slowdown.
Motor Industry Association (MIA) chief executive Aimee Wiley said the recent lift suggests the sector is stabilising, although conditions remain challenging.
“The past four months have shown pleasing and sustained improvement, but the overall economy remains subdued and the market fragile,” she said.
“Conditions are still tight, with households under pressure and confidence only beginning to recover.
“The modest lift in registrations signals stabilisation rather than expansion, a gradual firming as the market starts to find its feet,” Wiley says.
Economic Conditions Still Mixed
Market data continues to reflect pressure across the wider economy. Infometrics reports GDP fell by 0.8 per cent in the year to June 2025, while consumer spending dropped 1.7 per cent. Employment declined by 1.5 per cent, raising unemployment to 5.0 per cent.
The Reserve Bank’s recent cut in the official cash rate to 2.5 per cent has begun to ease borrowing costs. However, the benefit is uneven across industries. Strong returns from primary exports are helping rural regions, while construction, manufacturing and urban retail remain weak.
Passenger Cars Lead Market Growth
Passenger vehicles were the strongest performers in October, with 10,712 registrations, which is an increase of 12.9 per cent compared to last year. Hybrid models were especially popular. The Toyota RAV4 topped the sales chart with 1,636 registrations, followed by the Mitsubishi Outlander with 590, and the Toyota Yaris Cross with 552.
In the light commercial sector, there were 2,918 registrations. This was slightly down on September, but still higher than October last year. The Ford Ranger led the segment with 836 registrations, followed by the Toyota Hilux with 759 and the Mitsubishi Triton with 244.
Heavy commercial registrations reached 610, which is similar to recent months and still reflects soft activity in freight and construction.
Demand Grows for Hybrids and Plug-in Hybrids
Low-emission vehicles showed a mixed result in October. Battery electric vehicles saw 507 registrations, which is lower than both last month and the same time last year. Plug-in hybrids increased to 503, showing growth from both September and October 2024.
Hybrids continued their strong performance, reaching 4,669 registrations, up from last month and the same time a year earlier. Buyers continue to favour models that reduce fuel costs without requiring full EV charging infrastructure.
The MIA says the latest figures indicate stabilisation rather than a full recovery. While finance costs are easing and rural demand remains steady, household budgets are still under pressure and confidence is building slowly. Growth in hybrids and plug-in hybrids suggests buyers are still looking for ways to manage running costs as economic conditions remain tight.
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