Distributor calls for feebate to boost EV sales
A major new-car importer is calling on the government to introduce a feebate to help lower the sticker price of electric vehicles (EVs).
European Motor Distributors (EMD), which is the official New Zealand distributor of Volkswagen, Audi, Porsche, Skoda and Seat vehicles, has made the comment following plans for a clean-car import standard and talk of banning petrol and diesel car sales by 2035.
It says a feebate, which would provide discounts for low-emissions vehicles and penalise high-emitters, will boost the uptake of EVs and plug-in hybrids (PHEVs).
EMD, part of the Giltrap Group, also notes the standard’s goal of slashing carbon dioxide (CO2) emissions from 171g/km for the average imported car to 105g/km by 2025 is “steep” and will require extra government assistance.
Penalty rates for importers who miss their targets look set to be charged from 2023 at $50/g of CO2 above the limit for new-vehicle imports and $25/g for used imports. The levies are expected to increase to $75 and $37.50 respectively in 2025.
“Overall, it is clear that this is a necessary step forward for New Zealand,” explains EMD. “However, the timeline to reduce emissions is steep and will take a great deal of support from the government to achieve this.
“From an importer standpoint, we need to see strong incentives in the form of a feebate to help create demand for these vehicles. We would also like to see used cars treated the same as new cars.”
EMD tells NZ Autocar the marques it represents are committed to a “better, cleaner future” and are making good progress in electrifying their line-ups.
However, the transition for commercial vehicles remains “problematic” with the shift in powertrains likely to be a few years behind light vehicles.
“Globally our brands have been working towards producing a fleet of both electric and hybrid vehicles,” it adds.
“While we are excited to adopt these locally, our market faces supply challenges.
“We expect to see these passenger vehicles available in New Zealand within the next two to three years but commercial vehicles are more problematic. Due to the lack of technology, we won’t see changes here for at least another four to six years.”
