Challenges continue for market

The Motor Industry Association (MIA) has highlighted that continued market adjustments driven by broader economic pressures and shifting buyer behaviours are still putting pressure on the new-vehicle market.

It reports there were 10,863 new-vehicle registrations in January, which was a 14. per cent decline compared with the same month a year ago and a 13 per cent drop from January 2023. 

Despite subdued figures, the MIA notes segments such as hybrid vehicles and select SUV models continue to show resilience, reflecting evolving consumer preferences towards fuel efficiency and sustainability. 

Aimee Wiley, chief executive, says: “The January 2025 vehicle registration figures highlight the ongoing adjustments within New Zealand’s automotive sector. 

“The decline, particularly in light commercial vehicles, was expected following the exceptional spike in January 2024, which was driven by the removal of clean car discount penalty fees. 

“A comparison with January 2023, a more stable market period, suggests a broader downward trend across all vehicle segments.” 

Wiley, pictured, adds that while consumer demand is shifting towards SUVs and hybrid vehicles, the pace of this transition remains slower than what is required to meet the recently strengthened carbon dioxide (CO2) targets in the clean car standard. 

As a result, the industry faces the challenge of trying to balancing regulatory compliance with evolving consumer preferences while ensuring that vehicles remain accessible and competitively priced. 

“Managing this transition effectively is critical to preventing unintended market consequences, such as rising vehicle costs or supply constraints,” continues Wiley. 

“While hybrid adoption remains strong, electric vehicle uptake has yet to see a significant rebound. 

“Ensuring long-term affordability and sustainability in the market will require ongoing collaboration across the sector, with a focus on aligning supply with both regulatory requirements and real-world consumer demand.”

By the numbers

A breakdown of new-vehicle registrations by motive power for last month reveals battery electric vehicles (BEVs) claimed a 5.5 per cent market share with 595 units.

Plug-in hybrids (PHEVs) secured 4.4 per cent with 478 sales, hybrids clocked up 3,082 registrations for 28.4 per cent, and vehicles with internal combustion engines accounted for 61.8 per cent of the market with 6,708 units.

Last month’s leading segments were medium SUVS on 25.2 per cent, compact SUVs with 23.7 per cent and pick-up/chassis cab on 13 per cent.

There was a shift back towards private buyers in January, with those consumers accounting for 39.6 per cent of the market compared with 32 per cent a year ago.

Business buyers remained the dominant category on 51.7 per cent, down from 53.6 per cent, and government purchases lifted their market share from 1.3 per cent to 2.4 per cent.

As for rental buyers, their market share slipped from 13 per cent a year ago to 6.3 per cent last month.