New Zealand is getting serious about accelerating the adoption of electric vehicles, with a Clean Car Discount, now offering as much as $8,625 off the price of an EV. By comparison, Australia’s best EV incentive is from Victoria, which currently offers $3,000 to increase uptake, while other regions like the ACT offer free rego for a couple of years.
In Aussie dollaroos, the NZ $8,5625, works out to be A$7,978.20, a significant reduction to the price of EVs with cars under A$80k being eligible. For electric vehicles first registered between 1 July and 31 December 2021, a simple flat-rate rebate will apply. NZ are also mandating that cars need to achieve a 3-star or higher safety rating to be eligible.
New Zealand’s transport minister Michael Wood, shared the following graphic today, which highlights the Nissan Leaf and Tesla Model 3 fully electric vehicles, which attract the biggest discounts of $8,625. This also applies to the Hyundai Kona EV and any others that arrive before the end of the scheme.
The NZ policy focuses on ensuring vehicle owners migrate to cleaner vehicles which actually include Hybrids like the Mitsubishi Outlander (PHEV) and Toyota Prius (PHEV) but at a lower discount of $5,750.
To fund this policy, NZ has taken a very aggressive approach in transitioning to clean energy vehicles, which shows their level of commitment and seriousness around the issue. Like Australia, NZ imports their vehicles from manufacturers overseas, and under the Clean Car Programme 2022, those which pollute the most will be charged, as much as $5,175 for a new import and $2,875 for a used import. Vehicles likely to incur a fee include the Ford Range (NZ$2,780), Toyota Hilux (NZ$2,900) and Mitsubishi Triton (NZ$2,780), along with the Kio Sportage (NZ$1,230) and Mitsubishi ASX (NZ$540). The worst of these, the Ranger emits 234 CO2 per km.
As I said, taxing those buying ICE vehicles in 2022 is aggressive, with many expecting schemes that charge ICE vehicles, to be a lot closer to 2025, as we are hopefully at the tail end of ICE vehicle sales. If the world is to meet its 2050 goals, it is important that over the next decade and change, ICE vehicle sales end, as the life of many vehicles is up to 15 years.
By implementing a policy like this in place, it gives you levers, on one hand, you have the incentive to encourage the behavior you want (new EV sales), while placing downward pressure on the behaviour you want to stop (ICE sales). Over time, the amounts could be adjusted, based on how successful the transition is and in theory, the scheme won’t have a cost to the Government,