Clean Car Discount driving EV uptake, Labour says

Latest data confirms the Clean Car Discount (CCD) is driving a big increase in electrified vehicle uptake and is making a real contribution to climate goals, says Labour leader Chris Hipkins.

“In September we passed the 150,000 milestone, with 156,000 rebates paid to EV and hybrid customers since July 2021, when the scheme started.

“Electrified vehicles now make up more than half of all new vehicles and used imports registered in New Zealand,” says Hipkins.

The upsurge has been kick-started by the CCD, and average emissions from newly registered vehicles have dropped by nearly 33% since July 2021, he adds.

“This Government’s Clean Car Discount policy is already contributing to New Zealand’s steady reduction in climate emissions, and that effect will accelerate as we continue to electrify the vehicle fleet.

“Removing the discount would put our climate goals in jeopardy,” says Hipkins in a nod to proposals under a possible National-led coalition.

Transport minister David Parker says the latest data confirms the CCD’s success.

“The rate of EV and hybrid registrations is climbing – they accounted for more than 53% of all new vehicle registrations since July, compared with 39% between April 2022 and June 2023.

“Average carbon dioxide emissions from newly registered vehicles are now at the lowest rate ever, at 126 grams per km. When the scheme started, the rate was 188 grams per km,” Parker explains.

“The Clean Car Discount is the key factor in greening New Zealand’s vehicle fleet.

“Annual uptake of EVs and hybrids has risen by 180%, compared with a 30% decrease for petrol and diesel vehicles.

“The impact of the scheme was clearly shown when it was expanded in April 2022 to encourage hybrids and discourage high emission vehicles. That same month, average emissions from all newly registered vehicles dropped from 205g/km to 131g/km, due to a surge in hybrid sales and a big drop in petrol and diesel. Recent changes in July 2023 have led to hybrid registrations outnumbering petrol car registrations.”

Parker says the CCD is the key factor in greening New Zealand’s vehicle fleet.

Energy Efficiency and Conservation Authority (EECA) research finds that 62% of EV owners bought their EVs sooner than they otherwise would have because of the CCD.