Association warns of CCD impacts

The Imported Motor Vehicle Industry Association (VIA) fears the changes being made to the clean car discount (CCD) from July will have a number of negative impacts.

It has issued a press release outlining its main concerns about the overhaul of the feebates scheme following an announcement by Michael Wood, Minister of Transport, on May 2.

VIA sent out its statement on May 5 saying it was aware of the current funding deficit for the CCD and was therefore expecting any changes would necessarily involve increased penalties and decreased credits.

It goes on to state it has concerns around the timing for introducing the new regime, equity factors, fewer vehicle options for importers, increasing costs of vehicles, reducing the accessibility of people movers, and any benefits for disability vehicles being inaccessible.

Kit Wilkerson, head of policy and strategy, explains the timing of implementation for the changes to the CCD is less than what is necessary for parallel imports to adjust their buying behaviour. 

“Due to existing shipping delays, it currently takes a minimum of two months to import vehicles which means that there will be importers who began the process of importing vehicles in good faith under the previous rules that will instead be caught by the new rules,” he adds.

Wilkerson, pictured, continues that the scheme has lower-income New Zealanders subsidising the purchase of high-efficiency vehicles by more affluent buyers. 

He notes the decrease in options for affordable high-efficiency vehicles that will result from the announced changes will further penalise the models that lower-income or average New Zealanders can afford, “exacerbating the inequity of the programme”.

“The parallel import industry has a competitive supply, the narrowing of options for ‘preferred’ vehicles that earn subsidies will increase competition for the supply of these vehicles, driving up the costs of these vehicles,” he says.

It is also feared the July 1 overhaul of the CCD will result in all seven and eight-seat people movers being penalised, punishing larger families without providing options.

VIA adds that it welcomes the apparent intent behind the rebates for new or used disability vehicles, with $11,500 for an electric vehicle (EV) or $5,750 for plug-in hybrids and hybrids.

However, it warns the reality of the current market casts doubt on any actual benefit. 

“At present, there are no EV disability vehicles. There are also only a few hybrid disability vehicles available in source markets, only one of which is within the budget of the static cap on the grants that most disability vehicles are purchased under,” says Wilkerson. 

“That one hybrid vehicle is under intense demand pressure, with one leading importer of disability vehicles currently only able to source two per year. 

“VIA fears that the apparent benefits announced under the new rules for the clean car discount will justify denying the industry’s request to exempt disability vehicles from the clean car standard. 

“If the government does exempt disability vehicles from the clean car standard, as they should, then the announced changes will benefit those who need disability vehicles in the future. Otherwise, the programme will result in less access to disability vehicles by those who need them.”