New Zealand Exceeds 50% Electric Vehicle Penetration In December 2023!

Due to changes in government regulations in New Zealand, which included the “ute tax,” the sale of electric vehicles soared to 50% penetration in December 2023. However, industry experts believe this is a short-term surge and that the first quarter of 2024 will provide a more accurate reflection of the market. This represents a significant improvement from the 30% penetration rate in November 2023. A total of 4,455 battery electric vehicles were registered in December, with the MG4 and the Nissan LEAF leading the pack. Additionally, New vehicles now for sale in New Zealand include the Subaru Solterra, the Toyota clone BZ4, the BYD Seal, and the Jeep Avenger.

In terms of market share, 39% of vehicles sold in December were battery electric, 12% were plug-in hybrids, and 31% were plug-less hybrids. Analysts have suggested that New Zealand has achieved 80% of new vehicle sales with some level of electrification.

Looking ahead, both industry experts and consumers are curious to see where the New Zealand market will stabilize without significant government subsidies. The future development of electric vehicles in New Zealand is a topic of interest to watch, considering that 1.5% of new utes and vans registered in 2023 were battery electric. Furthermore, with petrol prices reaching almost $3 a litre in Auckland, the cost savings and environmental benefits of electric vehicles are becoming more evident to consumers.

It is clear that electric vehicles will play an important role in reaching net-zero emissions worldwide and New Zealand’s aspiration to become the Norway of the Pacific. With ongoing changes in the market and consumer demand, it will be fascinating to watch the evolution of the auto industry in New Zealand throughout 2024.