Rental car shortage looms
New Zealand is at risk of being short of up to 10,000 rental cars for the 2023-24 summer season with fears the government’s clean car programme is hampering efforts to improve that number.
Ben McFadgen, chief executive officer of the Rental Vehicle Association of New Zealand, has spoken out as the number of international visitors is expected to climb to more than 2.75 million this year. This will be about 90 per cent of the total seen before the Covid-19 pandemic.
He says the rental vehicle market is only likely to be able to increase its new car fleet by about 15,000 units ahead of the warmer months when New Zealand’s borders will be fully open for the first time in three years.
McFadgen, pictured, warns the sector is “not quite” ready for the anticipated influx of tourists and will only be able to increase its new car rental fleet by approximately 15,000 vehicles, “leaving us still about 7,500 to 10,000 short”.
He adds this is because of ongoing supply chain problems affecting new vehicles and the availability of parts, and major changes to the clean car policies, which has affected the price of vehicles.
“Right now, New Zealand’s motor vehicle industry is significantly challenged by the government’s decarbonisation timeline, in particular the clean car scheme,” he says.
“It will affect vehicle supply and it could potentially affect vehicle safety. We believe this puts New Zealand’s economic and social health at risk.”
McFadgen says the association supports the government’s vision to create a cleaner fleet and notes the uptake of modern internal combustion engine vehicles and hybrid cars would significantly lower emissions than earlier models.
When operators renew their fleets, it pushes newer, safer, lower-emitting cars into the second-hand car market.
“New Zealand has a challenge with the age of its car fleet. We believe that focusing on a more modern fleet is a viable way to transition to zero emissions.
“It benefits all Kiwis and it balances commerciality and infrastructure while giving New Zealand’s transport network time to decarbonise.”
