Call for permanent CCS split
Splitting how the clean car standard (CCS) treats new and used imports is a priority for the Imported Motor Vehicle Industry Association (VIA) when the government reviews the scheme next year.
Greig Epps, chief executive, says a single-policy framework does not serve either sector effectively because supply chains for new and used vehicles are structurally different.
He notes the reset of CCS penalties from the start of 2026 will provide temporary relief for the industry but the bigger test for officials will come with next year’s review of the legislation, with recommendations due to go to cabinet by June.
VIA is calling for the coalition to permanently split the scheme, with the part for used imports calibrated to vehicles available in Japan at price points under $15,000.
These vehicles are typically nine to 10 years old and VIA says they will help balance emissions, safety and affordability in the domestic market.
“New vehicle distributors plan years in advance. They can commission compliant models and generate credits,” explains Epps, pictured.
“We can’t. We work with what already exists. The policy needs to reflect that because Kiwis rely on the vehicles we deliver.
“We’re not asking for exemptions. We’re asking for fit-for-purpose policy. A split system would maintain emissions goals and keep the market functional.”
VIA is also seeking updates to weight-based targets and clearer guidance on emissions equivalency between jurisdictions.
“We want the CCS to work,” adds Epps. “But it has to work in the real-world context of the used market.”
Essential vehicles
The Government passed a number of changes for the CCS in November, which VIA notes will deliver a critical reset in the used vehicle supply chain and restore access to essential vehicles for Kiwi households.
From January 1, 2026, CCS penalties for used imports will drop to between $6 and $7.50 per gram of carbon dioxide.
Epps hopes this will reverse a trend that made many family vehicles uneconomic and allow importers to re-engage with vehicle segments that had effectively been shut out of the market.
“This is not a full solution, but it reopens choice for households who had been priced out of the market for people movers, wagons and practical mid-size vehicles.”
The CCS was designed to accelerate the shift to lower-emissions transport but VIA says its universal framework meant penalties of $1,000 to $3,000 per vehicle became common across popular family vehicles such as the Toyota Estima and Nissan Serena.
The number of these models in the market dropped or their price increased to the point where buyers traded down to older, higher-mileage vehicles. This unintended consequence undermined the environmental goals of the CCS by impeding fleet renewal.
However, Epps says recent auction data from Japan shows renewed interest from New Zealand buyers for a variety of models, including larger, mid-life vehicles.
“The 2026 change won’t make vehicles cheaper across the board,” Epps says. “But it does allow importers to re-enter segments that matter. Households will see more choice, especially in vehicles that had all but disappeared.
“We’ve seen a 20 to 30 per cent lift in bidding from Kiwi traders since the change was signalled. That’s not about volume, it’s about variety. Importers can now compete for vehicles that fit Kiwi needs.”
He adds evidence presented in VIA’s policy papers also shows that when mid-life vehicle imports are constrained, the average age of the fleet rises.
“Affordability plays a major role. If households can’t access vehicles in the $10,000 to $15,000 range, they tend to hold on to older vehicles longer. That increases actual emissions on the road, not lowers them.”
