BEV sales ‘plummeted’ – Colonial Motor Company report

The artificial stimulus provided to the battery electric vehicle (BEV) market disappeared with the removal of the Clean Car Discount (a rebate and a fee) from January 1, 2024, exposing how distorting government interference in the automotive market had become.

So says the Colonial Motor Company in its 2024 report, adding BEV sales overall plummeted and have yet to recover.

“The cost to the consumer is now often lower than when the rebate was in effect,” it says, noting the impact on residual values of BEVs has significantly affected the used car market for these vehicles and negatively affected the total cost of ownership for buyers. 

“Sales coming from hybrid and plug-in hybrid vehicles have been less affected by the removal of the Clean Car Discount,” says chief executive Alex Gibbons in the report. 

“They appear to strike a more practical balance of range, fuel economy and convenience that works for the average Kiwi motorist.”

EVs in their various forms will play an increasingly important role in the automotive industry, the report continues, “however the ambitious and unrealistic targets and attempts to manipulate consumer choice have done considerably more harm than good”.

The report says removal of the CCD scheme also had a profound impact on internal combustion engine (ICE) vehicles. 

“Overnight, retail values of these vehicles dropped, having a marked impact on residual values and triggering the immediate revaluation of used inventory.  While this change could be anticipated, in some instances existing inventory and commercial arrangements were still negatively impacted.” 

The Clean Car Standard (the import tax on a vehicle’s CO₂ emissions) remains but has been adjusted and the long-advised application of Road User Charges (RUC) to EVs has been introduced, Gibbons says.

“This reflects the need for all vehicles to contribute to the upkeep and maintenance of critical roading infrastructure. 

“The positive outcome is that commonsense prevailed and New Zealand now has an approach that broadly aligns with Australian emissions standards,” he says. 

“The hope is this will provide consistency in decision-making and stability for the industry to plan for a lower emissions future at a manageable and realistic pace. 

“The Clean Car Standard challenges importers to balance their vehicles’ emissions portfolio to meet the continually reducing average fleet CO₂ emission levels.  This alone will continue to incentivise a reduction in vehicle CO₂ emissions for vehicles entering New Zealand.”

The Colonial Motor Company report says a buyer’s market is operating and presents an opportune time to negotiate the next vehicle purchase.

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