The 'Electric Election': energy policies, side by side
NZ’s electric car sales dropped 70% last year while global sales rose, but the Transport Minister says his policies aren’t to blame
As Marc Daalder wrote:
Perhaps the supply problem is a reflection of that second issue Bishop cited: low demand. Why would an automaker send EVs to New Zealand if no one will buy them and they’ll be sold cut-price, potentially at a loss?
In 2023, New Zealand was among the world’s leading adopters of electric vehicles. But in 2024, it saw the second steepest decline in year-on-year EV sales – a 70 percent decrease, compared with the global average of a 15.6 percent increase in sales.
The cause for this is clear. The motor industry has repeatedly pointed to the Government’s decision to axe the Clean Car Discount – which placed fees on higher-emitting vehicles at the point of sale to fund rebates for EVs and some hybrids – as the cause of the collapse of New Zealand’s electric car market.
Had EV uptake in New Zealand simply continued at its 2023 rate, 30,000 more EVs would have been registered here – a 25 percent increase in the total size of the electric fleet. And that’s just if the adoption rate was flat, not growing like it has elsewhere in the world.
'Twas the night before Chris-mas, and all through the house, all the voters were stirring, the pundits showing their nous … the election will soon be over, but the energy crisis won't, so we'll be there to pester whoever is in power about the need to run more of the economy on New Zealand-made energy; can Ethiopia's aggressive push for EVs work and how does New Zealand compare in terms of adoption rates?; a two-way charging trial from Genesis shows promise in Auckland, but there's still a way to go before it's mainstream; small electric vehicles are often overlooked when it comes to electrifying transport, but it's hard to miss this weird French one; a solar-powered cafe (and some electric coffee); and we endorse the political vandalism of Keith of All Trades.
Read moreDownloadPoliticians are being urged to adopt stronger electric vehicle incentives ahead of the election. Climate and energy advocacy group Rewiring Aotearoa is arguing that EVs are one of the most effective long-term solutions for rising transport and energy costs. They're promoting an EV Salary Boost proposal, which would allow workers to access EVs through pre-tax salary arrangements – similarly to already existing schemes in the UK and Australia. Policy and Government Relations Spokesperson Ngaio Neumegen told Kerre Woodham that even with the rising cost of power, it's still cheaper to run an EV than a car running on imported fuel.
A proposal that would let New Zealanders lease an electric car using their before-tax pay has not won a commitment from either National or Labour, with the 7 November election days away. Under the EV Salary Boost, put forward by Rewiring Aotearoa and Drive Electric, an employee would lease a new or used EV for three to five years. The payments would come out of their pay before tax, lowering the cost of running the car. The idea is based on Australia’s novated leasing system, though the groups say they are not proposing a direct copy.
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