Opinion: Winners and losers from EV rebates
UPDATED: When the New Zealand Government announced the clean car package to drive down emissions it was clear that some new vehicle distributors will see a boom in EV and PHEV sales.
The likes of Toyota, Mazda, Hyundai, Kia, MG, and Tesla will be celebrating as they have vehicles that sit below the $80,000 threshold that sees buyers get up to $8625 off the price of new EVs from July 1.
They’ll also see an uptake in PHEVs as those new vehicles are eligible for a $5600 rebate.
Tesla is currently leading sales for EVs thanks to its Model 3 with a total of 484 sold year-to-date. I think that this brand will see a big increase in Kiwi buyers. With a recent price decrease to just over $72,000, if you add the rebate it’s available for nearly $64,000. That could see traditional petrol vehicle buyers consider trading in for an electric car.
On Tesla’s website, it says that the delivery date is “three to 13 weeks” – whereas the majority of brands face a four-to-eight month wait for stock.
The recently launched electric MG hatch, ZS EV, is in second place with a total of 225 sales year-to-date and the rebate will make it the country’s most affordable electric vehicle to $40,365 (plus on-road costs).
“MG is at the forefront of bringing affordable electric motoring to Kiwis,” said Peter Ciao, CEO, MG Motor Australia and New Zealand.
“We reduced price barriers to fast-track EV ownership in New Zealand, and this announcement aligns with our vision of Electric For Everyone.”
If supply isn’t an issue for MG, then you can expect it to have a successful second half of 2021.
Toyota will also see an increase in customers wanting to buy its popular RAV4 and Highlander hybrids.
The ‘losers’ are people who have recently bought a used EV so don’t get the $3450 rebate or those whose purchased a used Plug-in Hybrid Electric Vehicle won’t get the $2300 discount.
I have to feel sorry for Mercedes-Benz NZ that recently launched its full-electric EQA, priced at $85,500, so it just misses out on the rebate. But the brand can celebrate that the A250 e PHEV (priced from $73,100) can get the discount.
Peugeot is also celebrating as it has the 3008 SUV HYBRID4 and has a busy 2021 and beyond.
New full-EV models to launch in the second half of the year include the e-208 and e-2008 will qualify for a government Clean Car Rebate, while 2022 will see the release of a new 308 PHEV and 508 PHEV, as well as a new fully electric e-Expert Van.
What I know for sure is that all brands planning to launch EVs later this year, such as Hyundai at its Ioniq 5, will be now negotiating with its factories to see if they can bring in their vehicles under the $80,000 mark.
And my prediction is correct with Hyundai NZ just announcing that the Ioniq 5 will start from $79,990, so buyers are eligible for the rebate.