Breaking: EV RUC exemption extended

The light electric vehicle road user charge (RUC) exemption has been extended to March 31, 2024.

The news from transport minister Michael Wood comes before the RUC exemption for EVs was due to end on December 31 this year.

It’s estimated to save an EV owner about $800 annually compared with a diesel vehicle.

Heavy EVs already have a RUC exemption until December 31, 2025.

The RUC exemption for light EVs forms part of the government’s Clean Car Package, Wood adds.

 “Our government is continuing to take action to tackle transport emissions to meet our 2050 carbon neutral target – part of this is helping Kiwis into cleaner cars,” he says.

 “New Zealanders can save about $800 per year with this exemption, giving them another reason to make the switch to an electric vehicle. 

“Given charging your electric vehicle at home off-peak is like buying petrol at around 40c/litre, there are huge savings to be made,” Wood says.

 “The Clean Car Discount is also helping with the upfront cost of getting an electric vehicle, with Kiwis getting up to $8625 back in the hand. 

 “While the Clean Car Discount is providing support to those purchasing zero emission cars now, the exemption continues to provide support for those who bought one before the discount was announced.”

Motor Industry Association chief executive David Crawford says they are ‘surprised but pleased’ with the decision.

He says while the rebate remains the biggest part of the government’s EV incentive package, the RUC exemption plays a part.

He suggests it can’t last forever, and will, over time, become more contentious.

VIA chief executive David Vinsen says the extension is not unexpected.

“It is something that if they are serious about EVs they should have done ages ago.”

Vinsen suggests the government should be providing further incentives, such as T2 lane access, that are easy to explain to customers on the showroom floor.

EV trader Hayden Johnston of GVI Electric welcomes the move, noting RUC is a concern that is hard to explain and mitigate with buyers when they are looking at EVs.

“It makes sense to extend this while we are trying to increase EV uptake.”

The savings appeal to what many EV buyers are really motivated by.

“I still personally believe the main motivator for people is to save money. They are genuinely less interested in the environment and more in saving money.”

ChargeNet founder Steve West notes the move adds to the accessibility of EVs.

“The Road User Charges exemption offers significant annual savings for EV drivers. Combined with the Clean Car Standard and Clean Car Discount, this incentive helps make EVs more accessible to the average Kiwi,” West says.

“Our EV charging network has already seen an increase in demand, with July 2 the busiest day since ChargeNet launched in 2015.”

Drive Electric chair Mark Gilbert says the EV RUC extension is a smart call.

“Drive Electric has advocated for a short-term extension,” he says.

“However, as EVs inevitably become a larger share of our national fleet, we will need to consider how we fund future roads and maintenance.

“Therefore we support the extension being temporary, and it can be reassessed as necessary.”