Industry welcomes incentives

After several years of calling for incentives for low emission vehicles the Motor Industry Association chief executive David Crawford says he’s delighted transport minister Michael Wood has now confirmed details of their introduction. 

“We are also pleased that the Government has had the foresight to bring in an interim rebate from July 1 this year for EVs and PHEVs while it takes time to put in place the regulatory law required for a full feebate scheme which will come into effect in 2022,” Crawford says.

The level of rebate offered is significant, he says.

“It will, in our view, address in part the lack of affordability new low emission vehicles cost compared to their internal combustion engine (ICE) equivalent models.

“The rules around allowing the discount when calculating fringe benefit tax (FBT) and depreciation will go some way to addressing barriers to uptake of low emission vehicles by businesses,” Crawford adds.

“However, it stops short of the 50% reduction in FBT for electric vehicles we have consistently called for.”

Joining in congratulating the Government for announcing EV incentives, Drive Electric chair Mark Gilbert says that alongside new emissions standards this “puts New Zealand on the map for electric vehicle manufacturers”.

“We are telling them, New Zealand is a serious market for electric vehicles and we want that supply,” Gilbert adds.

“We are looking forward to them bringing in new ranges and models.

“For consumers, EVs are already cheaper over their lifetime than a petrol car, however the upfront costs are a barrier for the time being. This incentive levels the playing field between electric and petrol.”

Gibert says It’s important to get EVs on the roads now to combat climate change.

“Any car bought today will be on our roads for the next 15 years. If that car is a petrol car it will keep polluting into the 2030s,” he explains.

“The fleets owned by businesses and governments can also move more quickly towards electric vehicles. They will be an important source of secondhand EVs for New Zealanders.”

Gilbert says while the incentive is another important milestone – “we cannot overlook the complexity of this challenge”.

“We need electricity and charging infrastructure to meet new demand. We also need more walking, cycling, e-bikes and ride sharing.

“EVs alone won’t get us to a zero emissions transport system.

“We are looking for this detail in the Government’s response to the Climate Change Commission’s report in their Emissions Reduction Plan. Drive Electric members stand by ready to assist.”

Vector has also welcomed the Government announcement.

“The incentives announced by transport minister Michael Wood and climate change minister James Shaw at Vector in Auckland, will see the increase in EVs accelerate, which is something Vector has been preparing for over the past few years.”

Vector has been carrying out the largest EV smart charging trial in the country, which has given it information about customer behaviour, charging patterns and preferences.

“It has underscored the need for smart chargers to be connected to electricity network management systems – as recommended by the Climate Change Commission in its final advice,” Vector says.

This means that car owners will be able to switch to EVs knowing they will be able to charge them reliably and keep power affordable for all, it adds.

“We are committed to supporting decarbonisation in New Zealand and enabling a substantial increase in electric vehicles is a key part of that,” Vector Group chief executive Simon Mackenzie says.  

“We call this our carbon ‘hand-print’ – how we enable others to reduce their carbon footprint.

“In order to do this successfully, it’s vital we manage electricity demand as more and more people come home at the end of the day and plug their cars in to charge.”

Vector’s latest trial has confirmed digital solutions, data and smart charging are vital ingredients to successfully add more EVs into the energy system, Mackenzie explains.

“We’ve been pouring our efforts into a range of initiatives to understand how this can be done in a way that meets the needs of the car owners without costing millions in new poles and wires.

“When we add buses, trucks, ferries and even planes into the mix, it highlights the critical role of electricity distribution networks in decarbonisation.”

Smart, dynamic charging, using new digital platforms, will enable Vector to manage the load on the network, softening peaks, and ensuring power is kept affordable and reliable, Mackenzie adds.

“With 90% of EV charging happening at the home, it’s crucial that smart charging, combined with intelligent load management, can help electricity networks seamlessly integrate and support EV uptake.”

Vector says it has designed its platforms so they can be made available to other electricity distribution companies across the country.