Despite an increase in December 2024 new vehicles sales, the Motoring Industry Association warns that 2025 will also be a challenging year for the New Zealand automotive industry.

While Toyota was the brand in New Zealand with 30,203 registrations, the Ford Ranger was the most popular new vehicle with 11748 sales.

In second place overall for passenger and light commercial sales with the Toyota RAV4 (10533) and Toyota’s Hilux finished in third spot with 7296 registrations.

New Zealand's new vehicle registrations for December 2024 increased by 5.6% compared to  

December 2023, reflecting a partial recovery from recent market volatility. However, year-to-date figures show a 13.5% decline from 2023, highlighting the ongoing impact of regulatory changes,  economic pressures, and shifting consumer preferences.  

One year after the Clean Car Discount was removed, coupled with broader market adjustments, these factors continue to shape sales trends across all light vehicle categories, according to the Motor Industry Association (MIA).

The MIA acknowledged the complexities facing the automotive sector as it adapts to evolving regulations and market dynamics. 

“While the rise in December registrations offers a glimmer of recovery, the year-to-date decline highlights the pressing need for policy stability to support sustained market growth and resilience,” said MIA Chief Executivee, Aimee Wiley.

"Looking ahead, the industry's primary challenge will be navigating the stricter Clean Car Standard targets introduced for importers from 1 January 2025, while simultaneously supporting the transition to lower-emission vehicles. Achieving this balance is essential to avoid significant vehicle price  inflation in 2025 and beyond."  

Wiley emphasised that consumer preferences remain clear, with SUVs and light commercial vehicles continuing to dominate New Zealand’s market. 

She also highlighted encouraging trends in hybrid vehicle demand across all segments in 2024, reflecting a gradual shift towards lower-emission vehicles. However, she cautioned that the stricter CO2 targets present significant challenges for importers.  

"Consumer demand simply does not align with the stringent CO2 targets for light passenger vehicles in 2025,” she said.

“Importers face a delicate balancing act to meet these targets and avoid penalties, which could lead to consumer vehicle price inflation unless genuine demand for EVs rebounds significantly in 2025. The industry must work collaboratively to address these challenges while ensuring vehicles remain affordable and accessible for New Zealanders," Wiley added. 

It’s also going to be a busy year for many brands with new vehicle launches or facelift models arriving in New Zealand, while we can expect to see at least three new car companies launch here.