Monday, October 20, 2025

What Occurred to EV Gross sales in New Zealand? September Replace


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As soon as touted as having the potential to develop into the Norway of the Pacific, New Zealand’s electrical automobile gross sales have plummeted to historic lows. With no home manufacturing and the tip of proactive authorities motion attributable to a change within the nationwide authorities, New Zealand’s story exhibits how shortly issues can change.

New Zealand
BEV share of New Zealand EV market. Chart courtesy of James at EVDB.

James from EVDB provides us this potted historical past:

“In 2021–2023 NZ skilled speedy EV uptake. A feebate scheme (primarily based on automobile emissions) led to market share resembling an S-curve. Harking back to the Garner Hype Cycle — this was the ‘peak of inflated expectations’.

“In 2024 the market entered the ‘trough of disillusionment’ — the feebate scheme was cancelled, and a Street Person Cost (RUC) launched for electrical autos. EV gross sales plummeted.

“Now in 2025, over 18 months since coverage adjustments, BEV gross sales stay flat, whereas hybrids are slowly growing market share. In the newest September quarter, BEVs held simply 5% new automobile market share.”

He asks: Why is the EV market stagnant in New Zealand?

“We are able to solely speculate, however a couple of causes stand out.

  1. Financial circumstances are difficult. With GDP development at -1.1% in 2025, and unemployment charges lifting, there hasn’t been quite a lot of confidence amongst enterprise or customers.
  2. An absence of constructive signalling. Transport coverage in 2022–23 despatched a message to {the marketplace}: we’re transferring towards electrical autos. Whether or not folks agreed with the coverage or not; the EV grew to become part of the narrative. This message is now absent.
  3. Automobile working prices. Previous to the introduction of RUC, an EV was considerably cheaper to run than any ICE automobile. Now, the working prices of a small petrol hybrid are about the identical as a full EV (offered the EV is charged at residence). Petrol costs in New Zealand peaked throughout 2023, which additionally made motorists take into account going electrical. Now, petrol costs are about 20% decrease than these peaks.

“What can we study from the New Zealand scenario?

“With out policy-based incentives, EVs want a powerful cost-benefit benefit. There additionally must be continued training round one of the best use-cases for full-electric vehicles, slightly than a myopic one-size-fits-all method that simply focuses on emissions.

“The on-off coverage settings of the previous few years might have confused potential EV consumers. It’s a bit just like the phrase ‘throwing the infant out with the bathwater’. By ignoring EVs as a matter of precept, we’re lacking out.

“There’s one explicit transport state of affairs the place a BEV makes a lot sense it hurts: For two+ automobile households (60% of all NZ households), having one smaller EV for all of the city driving is a winner.

  • Recharge at residence (no worry round vary nervousness / public charging).
  • No extra journeys to the petrol station.
  • No want for a brilliant costly EV with an enormous heavy battery.
  • BEVs excel in effectivity at native stop-go driving.
  • Preserve the combustion automobile for all the opposite stuff.

“Mix this with NZ’s excessive proportion of renewal electrical energy technology, and the rising improve in rooftop photo voltaic technology, and also you’ve acquired some compelling causes to change to an EV.

“Nevertheless, we’re missing a constructive, aspirational transport plan that demonstrates how EVs, together with public transport, strolling, biking, can result in cleaner air and fewer reliance on gasoline imports.

“New Zealand has effectivity laws (the Clear Automotive Normal). These laws are there to encourage automobile importers to extend provide of cleaner, extra environment friendly vehicles. Nevertheless, with nothing to encourage automobile consumers (the demand facet of the equation), the system can’t work in addition to it ought to.

“Nevertheless, despite market circumstances, new reasonably priced BEVs are being launched into the NZ market, resulting in extra competitors and decrease costs.

“The Leapmotor B10 (small/medium SUV) has launched at a aggressive worth level. Nice Wall Motors have refreshed the Ora hatchback — the automobile is now the bottom worth new EV (at NZD37,990). Over the following month or two BYD will launch two new vehicles; the Atto 1 (referred to as the Seagull or Dolphin Surf in different markets) and the Atto 2. These autos will improve alternative within the lower-priced section.

New Zealand
Leapmotor B10. Photograph courtesy James at EVDB.

“Going ahead, a major shift in shopper sentiment is required earlier than EV adoption will improve. Solely when the market sees the electrical automobile as an object of want will issues change. How this may occur is an unknown.

“However there’s one positive factor in life: Nothing ever stays the identical.”

Wanting over the figures shared by James on EVDB NZ, September 2025 confirmed a slight enchancment in BEV gross sales — reaching virtually 7% — whereas PHEVs hit over 5%. Collectively that’s 12%. 12 months on yr, BEV gross sales elevated 28%, and PHEVs had a year-on-year improve of 32%. HEVs elevated about 30%. Diesel gross sales are down over 10%. Maybe EV gross sales are turning round. That is inside an auto market that sells about 10,000 autos a month. We must await the figures over the following few months earlier than we are able to predict a pattern. The crystal ball is slightly misty. So far, virtually 3% of the overall NZ fleet makes use of a plug.

The highest promoting plug in autos in New Zealand in September have been:

  1. Tesla Mannequin Y — 190
  2. Sealion 7 — 42
  3. Tesla Mannequin 3 — 38
  4. Kia EV 3 — 33
  5. World Atto 3 — 32
  6. MG S5 — 31
  7. Mini Countryman — 23
  8. Ford E-Transit — 20
  9. Kia EV 5 — 19
  10. LDV eDeliver 9 — 17
New Zealand
Charting the sluggish restoration. Chart courtesy James at EVDB.

Regardless of the problems foisted on the New Zealand auto market, I anticipate that NZ will proceed to have a shiny and electrical future. Preserve your chin up and your knowledge recent and I’ll actually look ahead to future information. James additionally studies on Australia’s EV market. Take a look at his web site right here.


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