Industry association boss suggests UK may become strong market for used zero-emissions vehicles as supply from Japan weakens.
Transport officials claim the government needs to raise New Zealand’s profile with key global figures in the manufacture and supply of electric vehicles (EVs) if it wants to achieve its goals for zero-emissions cars.
The advice comes as waitlists for new cars grow and the availability of second-hand EVs from Japan risks decreasing.
The government’s clean car programme has set a target for 30 per cent of the light fleet to be zero-emissions vehicles by 2035.
Ministry of Transport figures show there were only 40,000 such vehicles on our roads, or just over one per cent of the total fleet, as of October 11.
Officials have told Michael Wood, Minister of Transport, that to reach the 2035 goals and to achieve carbon dioxide (CO2) reduction targets, “requires New Zealand to successfully secure enough EVs in a fiercely competitive global market”.
“Without support, distributors may struggle to achieve these targets,” they say.
“To improve EV supply in New Zealand we recommend officials and ministers seek opportunities to raise the profile of the New Zealand market with relevant governments, organisations and automakers key to the manufacture and supply of EVs. A number of local distributors have indicated this would be helpful.”
Officials note New Zealand is particularly exposed to the supply constraints because of it being a relatively small, right-hand drive market, reports Newsroom.
They add securing an adequate supply of EVs remains a challenge even as the range of marques and price points expands.
“Other than Tesla none of the distributors appear to be in a position to supply in volume – over 1000 units per year,” they explain. “This is causing significant wait times for all new passenger EV models, and a pattern where models sell out before they arrive.
“All brands supplying EVs into New Zealand state they cannot secure sufficient allocations to meet demand.”
The availability of second-hand EVs from Japan was looming as another headache for the market, with officials warning “we may be approaching the limit of the used import EVs Japan can supply”.
It says this is due to Japan’s low domestic EV uptake and the focus of government policy and carmakers in that country on hybrids and long-term hydrogen projects.
David Vinsen, chief executive of the Imported Motor Vehicle Industry Association (VIA), says importers of used vehicles are trying hard to source EVs in the face supply constraints.
He notes Japan has about 120,000 EVs and New Zealand has already purchased just over 30,000 on the second-hand market.
Vinsen adds the UK may become a strong second-hand market for importers to turn their attention to.
“As the exchange rate has changed with the UK pound having dropped in value that means that we might have more purchasing power to buy used EVs and hybrids from the UK.”
Wood says the clean car discount has boosted demand for new EVs and claims the clean car standard, which is due to be introduced from January 2023, is helping importers get stock into the country.
The minister remains confident of achieving the 2035 targets and adds the New Zealand government is “putting ourselves out there really strongly” and advocating for New Zealand as an export market.
“I've put the message out to New Zealand importers across the board, that I will help support them directly when they're engaging with the suppliers and terms of getting stock here. So I think we're pulling all of the levers that we can to try to make sure we get that supply.”
Keyword: Call for more EV action from minister