How is the EV movement shaping up in New Zealand?

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 How is the EV movement shaping up in New Zealand?
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Highlights

  • Transport emissions make for nearly half of NZ’s carbon emissions.
  • The Clean Car Discount policy was launched in June, which increased EV sales.
  • The NZ EV market is set to grow as it offers more incentives for EV adoption. 

The transportation industry is a significant contributor to greenhouse gas (GHG) emissions, accounting for 16% of the total emissions of NZ from road transport. Transport is accountable for 47% of NZ’s carbon emissions.

NZ has set a target of a net-zero carbon economy by 2050. To meet NZ’s emission targets, the Climate Commission had set new objectives for the country's fleet transformation in June. One of the key suggestions comprised an import ban on petrol and diesel cars by 2032 and decarbonising road transport by 2050.

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Electric cars must make 50% of all light vehicle registrations by 2029, and 100% by 2035 for NZ to fulfil its transportation emissions objective, as per the Commission.

Clean Car Discount gives a push to New Zealand EV market

NZ witnessed a lift in EV sales last month, posting the highest EV registration figures on record, boosted by the introduction of the EV subsidy scheme.

On 1 July, the NZ government introduced the Clean Car Discount policy, which stated that people buying both new and used EVs will get a discount. The policy also looks to charge a fee on imports of high-emission utility vehicles and SUVs. It was meant to help more people switch to cleaner cars.

RELATED READ: Are these the 10 hottest electric vehicles of 2021?

Under the scheme, new BEVs (battery electric vehicles) or PHEVs (plug-in hybrid electric vehicles) are eligible for a subsidy of up to NZ$8,625, while used EVs (including BEVs and PHEVs) are eligible for financing of up to NZ$3,450. The subsidy scheme only applies to automobiles with a list price of less than $80,000. In the future, the programme will be expanded to include low-emission vehicles.

Must Read: Which electric cars are available in NZ? Are EVs environmentally friendly?

While YTD market was up by 51.2% when compared to the first 7 months of last year, July witnessed 15,053 new cars, SUVs and Utes registrations compared to 12,263 units in the same month last year.

As per the Ministry of Transport statistics, 1,944 pure EV and hybrid light vehicles were registered in July compared to 521 in the previous month.

DO READ: Hot electric car stocks for 2021

Bottom line

The EV market is poised for growth in NZ as the government continues to provide more incentives for EV uptake and pursues its carbon reduction policies. The Country also offers a favourable atmosphere for hydrogen fuel cell vehicles (FCVs) over 2020-2030.

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