Mixed fortunes for new vehicles

The Motor Industry Association (MIA) says the number of new-vehicle registrations last month indicates the market is stabilising despite sales of commercial vehicles falling sharply.

Its figures show there were 9,809 new-vehicle registrations in February, which was up 1.5 per cent from the same month a year ago and 2.8 per cent higher than February 2023. 

While the overall growth was modest, the MIA notes sector-specific trends reveal ongoing shifts in consumer and business purchasing behaviours. 

An increase in light passenger vehicle sales was driven by sustained demand for SUVs and hybrid models. 

Hybrid vehicles accounted for 33.4 per cent of the market last month, slightly below the 2024 full-year average of 35.9 per cent, and EV registrations remained “sluggish” at seven per cent of the total compared with 7.3 per cent in 2024. 

Conversely, the number of light and heavy commercial vehicle registrations tumbled, which the MIA explains was influenced by broader economic pressures and cautious business sentiment regarding fleet renewals. 

Aimee Wiley, MIA chief executive, says the February 2025 vehicle registration figures reveal a shifting market landscape. 

“While total industry registrations have increased slightly, the most notable trend is the widening gap between passenger vehicle growth and commercial vehicle decline,” she adds.

“The significant drop in commercial vehicle sales signals an ongoing contraction in demand, influenced by economic conditions, infrastructure investment cycles, and broader business sentiment. 

“Tighter business spending and a cautious approach to capital investment translate into delayed fleet renewals and lower commercial vehicle uptake.” 

Wiley, pictured, notes while consumer demand for SUVs and hybrids continues to grow, the pace of EV adoption remains sluggish and poses a challenge in meeting stricter carbon dioxide (CO2) targets for new imports.

 “Successfully navigating this transition is essential to maintaining vehicle affordability and supporting a well-balanced, sustainable market,” she continues. 

“While hybrid vehicle adoption continues to grow, EV uptake remains sluggish. The challenge for the industry is aligning supply with regulatory requirements and actual consumer demand, ensuring that a range of vehicles remain accessible, practical, and suited to the evolving needs of Kiwi buyers.”

Key figures

A breakdown of new-vehicle registrations by motive power for February reveals registration numbers and the market share of battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and hybrids all increased year-on-year.

However, the totals for vehicles with internal combustion engines fell from 7,145 registrations and a 74.2 per cent share to 5,868 units and 59.8 per cent.

Last month’s leading segments were medium SUVs on 25.1 per cent, compact SUVs with 23.2 per cent and pick-up/chassis cab on 16.4 per cent.

As for buyer types, private buyers accounted for 38.7 per cent of last month’s market compared with 35 per cent a year ago.

Business buyers remained the dominant category on 58.2 per cent, down from 61.5 per cent, while government purchases took a 0.2 per cent market share.

The portion of rental buyers fell from 3.4 per cent a year ago to 2.9 per cent last month.