Half of Kiwi car buyers want an EV

Some 49% of New Zealand car buyers want an EV, an EY (Ernst and Young) survey reveals.

A global tipping point for EVs has been reached, according to the latest EY Mobility Consumer Index, which shows 52% of respondents globally looking to buy a car want an EV – a 22% rise in two years.

New Zealand is ranked ninth in global EV adoption, with 49% intending to buy a fully electric, plug-in hybrid or hybrid car, the survey shows.

Since last year’s survey, New Zealanders’ EV purchase intent has increased by 19%.

In the survey of 13,000 respondents across 18 countries, New Zealand consumers ranked as the ninth most committed to buying an EV.

Car buyers in Italy (73%), China (69%) and South Korea (63%) are the most committed to buying an EV, while consumers in Australia (38%) and the US (29%) are the least committed.

Across the globe, environmental concerns are cited as a main driver for respondents to buy an EV (38%), although rising penalties on internal combustion engine (ICE) vehicles featured for the first time as a key concern (34%).

The survey also shows that those looking to buy an EV are willing to pay a premium – 88% saying they would pay more, and 35% willing to pay a premium of 20% or more, in keeping with 2021’s findings.

“There is no doubt New Zealand consumers are increasingly leaning towards electric vehicles,” says EY power and utilities practice leader Ashley Kearton.

“This is partly down to escalating petrol prices making internal combustion engines (ICE) more expensive to run, but environmental concerns also remain top of mind.

The New Zealand Government is working to further encourage the uptake of electric vehicles – hence transport minister Michael Wood attending the EVS35 summit in Oslo this month.

“Establishing strong global relationships will be crucial to the accessibility of electric vehicles going forward,” Kearton adds.

The survey also shows Kiwis are more likely to purchase a used car (19%) compared to a new car (16%), the only APAC country where this is the case.

“Even more so than in many other countries, creating a pool of affordable secondhand EVs will be key to making EVs accessible for all consumers and accelerating uptake in New Zealand,” Kearton explains.

The survey reveals those who already own EVs are less worried about ‘range anxiety’ or charging infrastructure.

The top motivator for second time EV buyers is that “EVs now have longer ranges”, and just 27% of EV owners were concerned about charging infrastructure compared to 36% of those currently without an EV.

In New Zealand, 21% of EV drivers charge their car at home daily.

“The old issues of worrying about charging infrastructure and the range of EVs will soon come to an end,” says Kearton.

“We know that the vast majority of (EV) journeys are relatively short, and as charging infrastructure continues to grow and battery quality continues to increase, we will start to see these concerns fade.”

Kearton says it’s clear those who own EVs know this already. “They’re looking at new models with greater range, which in turn is encouraging them to buy an EV again. They also know from experience that the charging infrastructure is there when they need it.

“As more people buy EVs and realise this for themselves, range anxiety will fade even further.”