Drive Electric report shows EV policy impact

Drive Electric has released its 2026 State of the Nation report on electric transport, revealing how policy changes since January 2024 have created domestic headwinds for a sector that has crossed a global inflection point.

The report shows New Zealand’s electric vehicle (EV) market share for new car sales dropped to 11% in 2025, down from 20% in 2023, following the repeal of the Clean Car Discount, weakening of the Clean Car Standard, and the introduction of road user charges for EVs.

Australia has overtaken New Zealand in EV market share for the first time after introducing its New Vehicle Efficiency Standard, according to the report.

However, Drive Electric notes a sharp rebound in March 2026, when EV registrations jumped from 642 in February to 2370 – a 265% increase in a single month. The spike coincided with rising fuel prices linked to Middle East conflict, with battery electric vehicle (BEV) market share more than doubling to 10.7% and plug-in hybrid electric vehicles (PHEVs) reaching 9.1%.

Fleet growth continues despite headwinds

There are now 138,626 light EVs on New Zealand roads and 260 new light EV models available, up from 152 in June 2023, says Drive Electric.

The BYD Shark 6 was the top-selling new EV in 2025 with 1885 registrations, followed by the Tesla Model Y at 1286 units. The Shark 6 captured 6.5% of the total ute market and accounted for 85% of all PHEV light commercial registrations.

Drive Electric highlights New Zealand’s structural advantages, including 88% renewable electricity generation, a grid capable of charging the entire light fleet off-peak, and a running cost equivalent of about 40 cents per litre for EV drivers.

Charging infrastructure lags targets

The country’s charger-to-EV ratio of 1:52 remains among the lowest in the OECD, and the public network of over 1800 charge points is not on track to meet the government’s target of 10,000 by 2030, according to the report.

A recently announced $52.7 million in zero-interest government loans to ChargeNet and Meridian Energy, with $60 million in matched co-investment, will deliver over 2500 new charge points.

Broader transport electrification advances

New Zealand’s electric bus fleet has grown around 12-fold in three years to over 515 buses, with Palmerston North, Mosgiel, Invercargill and Timaru now running fully electric fleets. Palmerston North recorded a 69% increase in bus patronage over two years following full electrification.

In maritime, the report highlights New Zealand’s emerging position as an innovator, with the world’s first commercially operated electric hydrofoiling vessel launched in the Hauraki Gulf and one of the world’s first maritime megawatt charging systems being deployed in Auckland.

Air New Zealand completed over 100 test flights of a battery-electric aircraft across 12 airports during 2025 and 2026, with an order for approximately 23 electric aircraft signalling intent for a potential cargo route between Wellington and Blenheim from around 2028.

Vehicle-to-grid pilot launches

New Zealand’s first comprehensive vehicle-to-grid (V2G) pilot launches in Queenstown in 2026, delivered in partnership with the Energy Efficiency and Conservation Authority (EECA), Rewiring Aotearoa and the Queenstown Electrification Accelerator.

Drive Electric says transport emissions cause an estimated $10.5 billion in social costs annually, including approximately 2247 premature deaths and 9400 hospital admissions. New Zealand spends an estimated $7 to $9 billion annually on petroleum imports, with no domestic refining capability since the closure of Marsden Point in 2022.

The report calls for a bipartisan, long-term strategy to electrify transport, noting that every jurisdiction achieving rapid EV uptake has engaged supply, demand and infrastructure policy levers simultaneously.

Drive Electric says its full policy manifesto will be released in July 2026.