New Zealand saw a 14.1 per cent drop in new car registrations in January 2025 compared to January 2024. There were only 10,863 new cars registered this month, 1,786 fewer than last year. According to the Motor Industry Association (MIA), this shows the car market is still facing challenges from economic changes and shifts in consumer buying habits.
Despite this, some vehicle types are still doing well. Hybrid cars and some SUVs are growing in popularity as people seek more fuel-efficient and eco-friendly options.
Challenges in the Car Market
MIA Chief Executive Aimee Wiley, said she expected the drop in new car registrations.
“The January 2025 vehicle registration figures highlight the ongoing adjustments within New Zealand’s automotive sector. The decline, particularly in light commercial vehicles, was expected following the exceptional spike in January 2024, which was driven by the removal of Clean Car Discount penalty fees,” Ms Wiley explained.
She added that when comparing to January 2023, “a more stable market period, suggests a broader downward trend across all vehicle segments.”
While more people are buying hybrid cars and SUVs, the change is happening slower than needed. The government wants to see more electric cars on the road, but people are still not buying many of them.
“Managing this transition effectively is critical to preventing unintended market consequences, such as rising vehicle costs or supply constraints,” she said.
“While hybrid adoption remains strong, electric vehicle uptake has yet to see a significant rebound. Ensuring long-term affordability and sustainability in the market will require ongoing collaboration across the sector, with a focus on aligning supply with both regulatory requirements and real-world consumer demand,” she added.
Market Insights
There were 8,062 new light passenger vehicles registered this month, including SUVs. This number represents a small 0.7 per cent decrease from January 2024 and a larger 13.1 per cent drop from January 2023.
The popularity of hybrid cars went down slightly, from 35.9 per cent in 2024 to 33.4 per cent in January 2025. Electric car registrations were also down, making up 7.0 per cent of sales, compared to 7.3 per cent last year.
Meanwhile, the market registered 2,338 light commercial vehicles. This is a big drop of 38.3 per cent compared to January 2024. However, it’s important to note that January 2024 saw an unusual increase due to the Clean Car Discount penalty fees. Compared to January 2023, the drop is 13.9 per cent, which is closer to normal sales levels.
Registrations for heavy commercial vehicles dropped by 37.1 per cent from January 2024. It also decreased by 5.7 per cent compared to January 2023. Business confidence and company investments in new equipment closely influence this market.
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