New Zealand EV Market Crash: 5% Penetration in January 2024

January brought an unexpected slowdown in electric vehicle (EV) sales in New Zealand, with plug-in electric vehicle sales hitting their lowest level in years. This drop was anticipated due to the removal of the EV tax incentive and the introduction of the Road User Charge (RUC). Luxury EV sales were not affected by these changes, and Toyota made its mark in the BEV market, making it to the top ten for the first time. It was surprising to see BMW emerge as the top-selling brand.

Despite this downturn, the New Zealand electric vehicle community remains optimistic, believing that EV uptake will continue, albeit at a slower pace. Charger installations in various locations indicate ongoing growth in EV infrastructure. According to James at EVDB, the average over the last three months stands at 30%.

In January 2024, only 244 new battery electric vehicles were registered in New Zealand, a sharp decline from the 4,455 registered in December 2023. Notably, lower-priced models experienced the greatest reduction in sales, with BYD Seal, Tesla Model Y, and the Toyota BZ4X leading the way. Despite these challenges, the market share for plug-less hybrids remained stable.

BEVs comprised approximately 3% of all light vehicle sales in January, while PHEVs accounted for 2.5% of the market. A total of 2,434 plug-less hybrids were sold, maintaining a 30% market share. Meanwhile, petrol-powered cars surpassed diesel sales, with Ford’s Everest and Transit performing well.

The top ten best-selling battery electric vehicles in January 2024 were dominated by BYD Seal, Tesla Model Y, and the Toyota BZ4X, reflecting the impact of the market slowdown on different EV models. The inclusion of luxury and premium brands was a noticeable trend during this period.

There has been significant debate around Toyota’s success in the EV market, with opinions divided on the brand’s innovation and impact. Questions have been raised about Toyota’s ability to compete with other brands in terms of value and reliability in the EV space. However, there is consensus on the importance of increasing EV adoption for a cleaner and sustainable future.

The future looks promising despite the recent sales slowdown in New Zealand, as new EV models are expected to enter the market and drive growth in the EV sector. Despite initial challenges, the electric vehicle market in New Zealand remains positive, with continued support and technological advancements shaping the industry.