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Industry debates clean-car plans

Chief executives of industry organisations give minister direct feedback over the political push to encourage the uptake of EVs and levy fees on high-emitters.
Posted on 01 July, 2021
Industry debates clean-car plans

Leading industry figures have reiterated their key concerns to Michael Wood, Minister of Transport, around the rebates and the looming feebate scheme during a special debate.

The minister was part of a panel that included David Crawford, chief executive of the Motor Industry Association (MIA), and David Vinsen, chief executive of the Imported Motor Vehicle Industry Association (VIA).

They were joined for the discussion in Auckland, which was hosted by the Driven website, by Mark Gilbert, chairman of Drive Electric, Lucie Drummond, general manager sustainability at Mercury Energy, and Stephanie Ward, director of infrastructure and government advisory at KPMG. 

The July 1 debate coincided with the launch of the government’s rebate for battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), while its clean-car discount that will levy fees and discounts on vehicles based on emissions ratings will kick-in from January 2022. 

Wood stuck to his previous comments suggesting electric or hybrid utes will be available in the next 12 to 24 months, despite the MIA and marques having previously said such a time frame is unlikely.

He also said the government’s clean-car policies are designed to prevent New Zealand becoming a “dumping ground for the world’s dirtiest vehicles”.

“The policy is not purely about electric vehicles but an overall effort to clean up the fleet,” he added. “We have a very dirty fleet and we’re driven by our need to get carbon out of our transport system.

Wood said the scheme is designed to be cost neutral and the government will look at altering the fees or discounts every year or two to make sure it stays in balance.

He also announced plans to set up a clean-car leadership council to draw on industry expertise and tackle any issues that arise from the policies and help plan the transition of the fleet in the medium and long term.

Crawford cautioned that despite the minister’s ambitions, it is going to take time to turn the market around to substantially more electric cars. 

“We want to sell as many EVs as we can but we just can’t get them,” he noted. “The whole world is scrambling for them and our ability to scale up is just not there at the moment.”

Vinsen reaffirmed his previous statements that cleaning up the existing cars on our roads should be a greater priority than the feebate.

He called for a detailed analysis the fleet and what mechanisms may be needed to make it safe and clean in 10 to 15 years’ time.

“That’s a much bigger piece of work that needs to be done rather than dealing with Band Aid-type solutions as they come along when some particular minister or government gets a good idea and drives it through.”

Neeraj Lala, chief executive of Toyota NZ, was in the audience at the event and said it is critical details of the policies are communicated to industry and the public with “absolute clarity” to avoid any confusing messages about what type of vehicles may be eligible for discounts.

To watch the full debate, click here.