Challenges continue for new vehicle market – MIA

A downturn in New Zealand’s new vehicle registrations highlights continued market adjustments driven by broader economic pressures and shifting buyer behaviours.

So says the Motor Industry Association (MIA), adding the 10,863 units registered in January are a 14.1% drop on January 2024 and 13% down on January 2023.

However, hybrid vehicles and select SUV models continue to show resilience, reflecting evolving consumer preferences towards fuel efficiency and sustainability, says the MIA.

Its chief executive Aimee Wiley says the decline, particularly in light commercial vehicles, was expected following the exceptional spike in January 2024 driven by the removal of the Clean Car Discount (CCD) penalty fees.

Wiley says while consumer demand is gradually shifting towards SUVs and hybrid vehicles, the pace of this transition remains slower than required to meet the recently strengthened carbon dioxide targets.

The industry faces a complex challenge – balancing regulatory compliance with evolving consumer preferences while ensuring that vehicles remain accessible and competitively priced, she says.

“Managing this transition effectively is critical to preventing unintended market consequences, such as rising vehicle costs or supply constraints.”

EV uptake has yet to see a significant rebound, says Wiley.

“Ensuring long-term affordability and sustainability in the market will require ongoing collaboration across the sector, with a focus on aligning supply with both regulatory requirements and real-world consumer demand.”