New Zealand is experiencing a significant surplus of electric vehicle (EV) stock as demand continues to decline, posing challenges for car importers.
In a report from RNZ, Motor Industry Association (MIA) chief executive Aimee Wiley said the decrease in EV sales follows the end of the Clean Car Discount and the introduction of road user charges.
“Under the previous government, the message was simple: transport emissions were a major concern, EVs were the solution, and because EVs were expensive, rebates would make them more affordable to encourage uptake,” said Ms Wiley.
“This combination of incentives and a clear, focused message to consumers produced tangible results. In January through August 2023, one in four new light passenger vehicles sold were EVs. Fast forward to 2024, and EVs make up just one in 11 new light passenger vehicles sold,” she further explained.
As a result, many importers are now left with excess stock.
“They’ve been forced to drastically reduce EV prices, making them the cheapest they’ve ever been in New Zealand. Yet, despite this, sales remain sluggish,” she noted.
While the industry anticipates a recovery in demand, Wiley emphasised that it will take time. She pointed to a potential impact from the changing government messaging about the importance of low-emission vehicles for reducing emissions. This shift may have contributed to the current situation regarding environmental protection.
Ms Wiley also highlighted the importance of consumer awareness and behaviour.
“It’s time to rethink our approach when it comes to choosing our next vehicle. The priority should be shifting towards safety, efficiency, emissions, and age as the key factors driving our decisions. If we all aim to make our next vehicle the cleanest, safest, and most modern option we can afford, it will significantly impact road safety, public health through improved air quality, and our environmental footprint.”
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