Market ‘confusion’ over EV policies

The Motor Trade Association (MTA) has called for more government action on the affordability of electric vehicles (EVs) and policies that investigate in-service emissions of cars already on New Zealand’s roads. 

In the past week following publication of the Climate Change Commission’s final report to ministers, the government has issued a consultation paper on biofuels.

In addition, it unveiled its rebate scheme for new and used EVs and plug-in hybrids (PHEVs), which will run from July 1 until the end of this year before a full feebates scheme starts on January 1, 2021.

On top of all this, there has been in-progress government consultation on the pathways to a net zero-carbon economy.

Greig Epps, advocacy and strategy manager at the MTA, says: “The roll-out of the clean-car rebate has been haphazard. 

“Businesses and industry associations were scrambling on Sunday [June 13] to make sense of what had been released. 

“The financing and leasing sectors were particularly unsure about how the mechanism of fees and rebates on registration would impact the financing process.

“The speed of the roll-out makes it hard not to take a cynical view that the government was reacting to media focus on the unaffordability of EVs.”

Epps notes there has unsurprisingly “been word” from auction houses in Japan that prices for vehicles have already started to increase in response to interim rebates in New Zealand for EVs and PHEVs.

“There has been confusion in the industry because many thought that the clean-car standard regime was being brought forward,” he adds. 

“It took a couple of days of fast engagement by officials to help businesses understand the consumer and registration focus of the rebates as opposed to the importer focus of the standard – that’s to say credits and penalties for landing vehicles.

“That dual aspect seems to have been ignored. From 2023, some vehicles will attract both a penalty on import and a fee on registration. 

“It’s hard to say exactly how this will impact because details of the clean-car import standard have not been legislated yet. 

“Also, many did pick up on the announcement ‘footnote’ that rebates will only be available if there is money in the pot.

“However, it is unclear how the buying public or the automotive industry will know if the rebate tap is about to be turned off.

“Despite the jumbled start, the MTA is continuing to engage with the Ministry of Transport and NZTA on roll-out and implementation.”