Dealers predict shortage of EVs

Dealers have reported a “mad rush” of buyers keen to get their hands on an electric vehicle (EV) following the government’s announcement of a rebate scheme.

They say the level of demand for EVs is unprecedented and warn it may lead to stock shortages and increased prices.

The extra activity has been stimulated by the government announcing its clean-car discount policy on June 13, which will provide rebates of up to $8,625 on new EVs and plug-in hybrids (PHEV) from July 1, 2021.

People buying used EVs and PHEVs will be entitled to a discount of up to $3,450 under the scheme that will be funded by the introduction of fees for high-emitting vehicles from the start of 2022.

Hadley Hargadon, owner of Auckland City Electric Vehicles, says he has seen a 20 per cent rise in sales since the government unveiled details of the programme and predicts a shortage of availability may hit the market in July.

Autolink EV owner Henry Schmidt notes there has been a “mad rush” in recent days with an increase in sales, phone calls and queries, reports Stuff.

He forecasts if that level of activity continues the Auckland company will sell all of its stock by the beginning of July – something that has never happened in its seven years of operation.

Schmidt, pictured, adds with EV popularity on the rise globally, it may lead to dealers facing a lack of stock at auctions in Japan where prices are already on the up.

Alistair Gilmour, owner of Gilmour Automotive in Dunedin, told the Otago Daily Times he has seen a 10 per cent increase in prices for all late-model used cars from Japan in the past six weeks.

He describes the intentions of the rebate scheme as honourable but says any savings will be “swallowed” by rising prices due to further demand.

Hayden Johnston, owner of GVI Electric in Auckland, also reports 55 people have paid deposits on EVs and plan to pick those cars up on July 1 when the subsidies begin.