Call for EV policy pledge

Policy changes have led to New Zealand slipping from being a world leader in 2023 for the electrification of transport, with a raft of countries – including emerging economies – “overtaking us”.

That’s one of the key messages from Kirsten Corson, chairperson of Drive Electric, Aotearoa’s peak body for the EV and e-mobility sector.

Its State of the Nation 2026 report, which was launched at parliament on May 20, paints a comprehensive picture of where our country stands in the global electric-transport transition – as well as what’s at stake if the country fails to act urgently and consistently. 

Corson, pictured, says New Zealand is falling behind and the planet isn’t waiting. “Transport electrification has crossed a global inflection point,” she explains. “It is no longer primarily an environmental movement. It’s an economic opportunity and national security imperative.” 

Drive Electric’s in-depth research will be followed by the launch of a detailed policy manifesto in July and the organisation says the direction is clear now. 

“What’s needed is a bipartisan strategy to electrify our transport system with supply, demand and infrastructure policies operating simultaneously,” says Corson. “That’s because every jurisdiction that has achieved rapid EV uptake has done so with all three levers engaged at once. 

“Without policy certainty, providers of private capital will price in risk or head to other markets, consumers will defer purchases, and New Zealand’s transition away from imported liquid fuels will be slower and more expensive.

“The question is no longer whether electric transport will transform New Zealand because it will. The question is whether New Zealand will lead that transformation or be reshaped by it. Structural advantages are in place and consumer appetite is there. What remains is policy commitment to match them.”

The economic opportunity 

New Zealand spends an estimated $7 billion to $9b annually on petroleum imports with no domestic refining capability since Marsden Point’s closure in 2022. 

Transport emissions also carry $10.5b in annual social costs, including more than 2,000 deaths from hospital admissions. 

A 2026 report by the Sustainable Business Council and Climate Leaders’ Coalition, which represents about 150 businesses and around 45 per cent of private-sector GDP, found a successful low-emissions transition could add $22.6b annually to national GDP by 2035, rising to $33.6b by 2050. Transport electrification was identified as a major contributor.

Real strengths and risks 

New Zealand has structural advantages most countries cannot match, according to the State of the Nation 2026 report published by Drive Electric.

These include 88 per cent renewable electricity generation, which hit a record 96 per cent in December 2025, a grid capable of charging the entire light-vehicle fleet off-peak and a transport-cost advantage that means EV drivers pay the equivalent of 40 cents per litre. That’s less than half the cost of petrol. 

Yet the country’s charger-to-EV ratio sits at 1:52 and is among the lowest in the OECD. For example, Australia – “once the laggard” – introduced its new-vehicle efficiency standard in 2025 and has closed the gap since then. 

Conversely, New Zealand’s clean-car programme has been “virtually dismantled, demonstrably setting back EV uptake”. The March 2026 surge in response to the Iran-Israel-US conflict reflects “genuine consumer appetite, but policy volatility extracts a cost borne by the whole transition”. 

Corson says: “New Zealand has every advantage we need to lead this transition – world-class renewable energy, an adaptable grid and consumers who want to make the switch.

“What has been missing is policy consistency to give investors and households the confidence to act. 

“We cannot afford another reversal. A long-term, bipartisan strategy isn’t idealism. It’s the minimum requirement for attracting private capital and delivering energy independence for every New Zealander.”

Full ecosystem emerging 

Drive Electric’s report covers the full electric-transport ecosystem and goes beyond cars. It tackles micromobility, with two-thirds of all vehicle trips in New Zealand coming in at less than 6km. 

The report says e-scooters, e-bikes, e-cargo bikes and e-mopeds are increasingly filling that gap, with significant growth forecast. It also examines other sectors:

• Passenger cars: More than 50 per cent of EVs are now made in China. Battery prices have dropped significantly, but sticker-price parity remains out of the reach of many Kiwis. This has created a “central policy challenge”. 

• Utes and vans: Fully electric utilities have arrived with vehicle-to-load capability and to a “warm” market reception. Van options are growing but suppliers need further support to scale. 

• Heavy vehicles: EVs make up four per cent of our heavy fleet but are responsible for 25-30 per cent of road-transport emissions. With 98 per cent still fuelled by diesel, decarbonising this segment requires “significant” policy change. 

• Buses: New Zealand’s fleet of electric buses has grown about 12-fold in three years. Palmerston North’s BEV fleet achieved a 69 per cent surge in bus usage, while Auckland Transport now operates the largest zero-emissions bus fleet in Australasia. 

• Maritime: From no EV ferries in 2023 there are several now operating, with megawatt charging systems and home-grown technology creating export opportunities.

The global shift 

One in four new cars sold worldwide is now electric. In China, it’s one-in-two. Norway has reached 98 per cent of new vehicles sold being EVs, yet after 35 years of consistent, cross-party policy only 32 per cent of its total fleet is electric. 

“The most important lesson this report carries is that transformation at scale takes time, consistency and bipartisan commitment,” says Corson.

“The transition isn’t just for wealthy nations. Emerging markets have identified the sovereign opportunity to reduce dependence on imported fossil fuels.”

Many countries making systemic choices are seeing results. For example, sales of new electric cars in Ethiopia now sit at 60 per cent. There is also an import ban on internal combustion engine (ICE) models and the country boasts 95 per cent renewable energy. Here are some other EV examples:

• Vietnam has 40 per cent EV sales and domestic manufacturer VinFast, while Thailand, a regional manufacturing hub, is sitting at 28 per cent.

• Turkey, at 22 per cent, is the largest BEV market in Europe by volume, and Costa Rica, with 15 per cent, is the highest in the Americas when it comes to electric cars.

• Indonesia, with 14 per cent, saw its electric sales triple year-on-year despite the ICE market there contracting.

By comparison, New Zealand has fallen behind. In 2025, some 11 per cent of newly registered vehicles were electric.