How is the EV movement shaping up in New Zealand?

Published on August 14, 2021 06:00 AM AEST

How is the EV movement shaping up in New Zealand? — Image source: Standret, Shutterstock.com

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.

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.

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.

Shaghil Bilali

Editor

Shaghil Bilali - Research Editor
0 Posts
Shaghil Bilali is a research editor with 15 years of experience in different verticals across media. He has worked with some of the leading media organisations in India. Before joining Kalkine Media, he was with Microsoft News' Canada overnight opera...
Follow Shaghil Bilali Follow

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.