The New Zealand Government’s announcement on incentives for buying low emission vehicles has been applauded by motoring and EV organisations.

Drivers who buy new cars from July 1 will be able to get taxpayer-funded rebates of almost $8700 for a new electric or plug-in hybrid car, and about $3,500 for used cars.

But those who buy petrol vehicles have to pay a fee of up to $5875 while those buying imported used cars face fees of up to $2875.

That fee would be based on emissions – for example, it would add $2900 to the cost of a new Toyota Hilux, $1230 to a Kia Sportage, and $830 for a Nissan Navara.

Petrol cars with lower emissions – such as a Toyota Rav 4 or Suzuki Vitara – would not face fees.

The Motor Industry Association (MIA) Chief Executive, David Crawford, summed up the announcement by the Minister of Transport and the Minister of Climate Change with its press release headline: At last – Incentives for Electric Vehicles.

Crawford said in the press release that “we are delighted that at last the Government has confirmed details of their introduction”. 

“We are also pleased that the Government has had the foresight to bring in an interim rebate from 1 July this year for EVs and PHEVs while it takes time to put in place the regulatory law required for a full feebate scheme which will come into effect in 2022,” said Crawford. 

“The level of rebate offered is significant. It will in our view address in part the lack of affordability for new low emission vehicles ... compared to their internal combustion engine (IEC) equivalent models. 

“The rules around allowing the discount when calculating fringe benefit tax (FBT) and depreciation will go some way to addressing barriers to uptake of low emission vehicles by businesses. However, it stops short of the 50% reduction in FBT for electric vehicles we have consistently called for,” he said.

Meanwhile, not-for-profit organisation Drive Electric also congratulated the Government on the announcement of an incentive for electric vehicles, to go alongside new emissions standards.

Drive Electric’s Chair, Mark Gilbert, said “the emissions standards and consumer incentive, puts New Zealand on the map for electric vehicle manufacturers”. 

“We are telling them, New Zealand is a serious market for electric vehicles and we want that supply. We are looking forward to them bringing in new ranges and models.

“For consumers, EVs are already cheaper over their lifetime than a petrol car, however the upfront costs are a barrier for the time being. This incentive levels the playing field between electric and petrol. 

“It’s so important that we get EVs on the roads now, if we want to combat climate change. Any car bought today will be on our roads for the next 15 years. If that car is a petrol car it will keep polluting into the 2030s.

“The fleets owned by businesses and governments can also move more quickly towards electric vehicles. They will be an important source of secondhand EVs for New Zealanders,” he said.

Last month, the top-selling pure EV (BEV) was Tesla’s Model 3, with 89 delivered to customers for a total of 484 year-to-date, according to the MIA.

The recently launched electric MG hatch, ZS EV, is in second place with a total of 225 sales year-to-date and Hyundai’s Kona takes out third spot with 209 sales so far this year.

Mercedes-Benz’s all-new EQA has already made an impact with 11 sales in May, its first month since its launch.

In the plug-in hybrid segment, Mitsubishi’s Outlander dominates this segment with 284 registrations so far in 2021. In second spot is BMW with the X3 with 38 registrations year-to-date.