CCD changes to ‘cause difficulties’
The Motor Industry Association (MIA) is warning that changes to the clean car discount (CCD) being implemented from July will disproportionately affect light commercial vehicles.
While the MIA welcomes some of the plans announced by Michael Wood, Minister of Transport, on May 2, it also raises significant concerns about a number of the changes that it predicts will adversely impact the new-vehicle sector.
Aimee Wiley, chief executive officer, says keeping the CCD eligibility criteria the same, namely the $80,000 cap, is welcome because it addresses inflationary pressures for new vehicle prices.
But she adds the MIA is disappointed a request to create a specific light commercial vehicle cap at $85,000 “seemed a step too far”.
“The consequence is that light commercial vehicles are now unfortunately disproportionately impacted by the July 1 CCD fee changes.”
Wiley, pictured, adds the most significant concern is the timing of the changes. She warns a notice period for the automotive industry of only two months will cause difficulties for the new vehicle sector for two key reasons.
“The first relates to makes and models that have long wait lists and where customers have paid deposits in advance for those vehicles and have an expectation about the overall purchase price for those vehicles,” she explains.
“The second relates to forward supply orders that have already been committed to by new vehicle importers and distributors. A longer notice period for these changes would have enabled industry to have adjusted some of those orders in the light of upcoming changes to CCD rebates and fees.”
The MIA anticipated a reduction in rebates, an increase in fees and adjustments to the bands for eligibility for rebates.
However, it is uneasy at the government’s new measures reducing the point at which a rebate begins from 146g of carbon dioxide (CO2) per kilometre to 100gCO2/km.
Wiley says this excludes almost all hybrid vehicles from qualifying for a rebate from July 1 and means the only vehicles to qualify for a discount from that date are likely to be battery electric vehicles and plug-in hybrids.
“The MIA is concerned about the potential impact to sales of non-plug-in hybrid vehicles,” she adds.
“If sales for these vehicles drop because they no longer attract a CCD rebate, this could negatively impact the downward trend of CO2 emission improvements from vehicles entering the New Zealand fleet.”
