EV dealers scornful of Budget 2019

Dealerships handling used imported EVs find nothing for them in the Wellbeing Budget 2019.

No mention of any “feebate” scheme to reward EV buyers and penalise polluting vehicles, no EV incentives, no new EV policies or targets – nothing.

“But now we can move on and sell some vehicles, there won’t be any feebate – just empty promises and there will be no money in the kitty,” says Martin Harwood of Harwood Cars in Auckland which sells mainly imported Nissan Leafs.

He says it was “silly” of various ministers to announce as early as last year that EV incentives were on the way. That resulted in some customers thinking they should wait for the incentives before buying an EV to get some money back, Harwood adds.

“There’s nothing in the Budget for us,” Auckland’s Autolink Cars managing director Henry Schmidt says. “No incentives at all. Just ask Winston if you want something done – not the Greens.”

Schmidt expected to see something encouraging companies to switch their fleets to EVs – at the very least.

“The Greens and Labour are disappointing, because when they were in Opposition they were knocking National for not changing the Government fleet to EVs, but they’ve done nothing since they have been there (in power).”

Schmidt says Norway EV Association secretary-general Christina Bu explained what Norway and other countries had done to encourage EVs while visiting New Zealand late last year.

“Incentives are used all around the world – and that’s not put the price up on cars,” Schmidt adds.

GVI Group general manager Hayden Johnston reckons the Government isn’t putting its money where its mouth is, especially in regard to EVs.

“If they want to achieve the target of 64,000 EVs on the road by 2021 they need to put an incentive in place for company and fleet EV purchases, especially on new vehicles, as this is where the volume will come from.”

Johnston says auto manufacturers need encouragement to offer more EV and plug-in hybrid (PHEV) models in the New Zealand market. “And we need to be able to step out of Australia’s shadow and offer models that they are not interested in stocking due to limited interest in EVs full stop.”

Johnston says pre-owned EV prices have never been so affordable. “So I don’t believe an incentive is needed at that end of the market, but they need to make an announcement one way or another as many potential buyers are in a holding pattern waiting to see what they do.”

Johnston says if the Government isn’t going to do something about EV incentives then it should stop talking about it.

David Boot of EV City in Christchurch says he doesn’t mind the Budget not including any EV “feebate” or incentives as he views these as an “artificial push”.

He believes such policies might encourage more dealers to enter the market in hopes of making quick money and that EV suppliers are already struggling to meet demand.

“I’m quite relaxed about there being no big incentives for EVs in the Budget as we can’t get enough supply anyway.”

Nelson Cottle of Auto Court in Dunedin says talk of up-coming incentives has detrimentally affected EV sales.

“The Government put it out there that incentives were definitely coming, but now nothing. People have been holding back waiting for the incentives before they buy.

“It would have been better if the ministers had said nothing at all.”