EV demand surges as fuel costs drive buyer shift

New vehicle registrations jumped 25.2% in March 2026 as electric vehicle demand strengthened dramatically, with battery electric vehicles tripling their market share amid rising fuel costs.

A total of 14,908 new vehicles were registered in March, up from 11,904 units in March 2025, according to Motor Industry Association (MIA) data. Battery electric vehicles accounted for 2,422 registrations, representing 16.2% of the market compared with just 5.4% in the same month last year.

Motor Industry Association chief executive Aimee Wiley says the result reflects a clear shift in buyer behaviour, with increased engagement from both private and business customers in lower-emission vehicles.

“Demand for electric vehicles has increased rapidly, as rising fuel costs are influencing purchasing decisions across the market,” Wiley says.

The surge in electric vehicle uptake was accompanied by strong growth in plug-in hybrid vehicles, which increased to 1,439 registrations (9.7% share) from 467 units (3.9% share) in March 2025. Combined, battery electric and plug-in hybrid vehicles represented 25.9% of all new vehicle registrations.

Tesla’s Model Y led battery electric vehicle sales with 480 units, while Chinese brands including Dongfeng, BYD and others contributed significantly to the electric vehicle growth.

Supply constraints emerge as demand outpaces expectations

Wiley says the pace of change had been faster than supply conditions could immediately accommodate.

“New Zealand is a long lead-time market, and supply pipelines were set against more subdued demand, so available stock has been drawn down quickly,” she says.

Current demand levels are exceeding available supply in parts of the market, reflecting the rapid drawdown of stock following a sudden shift in purchasing behaviour.

Year-to-date registrations totalled 36,857 units, up 13.3% on the same period in 2025, indicating sustained underlying demand through the first quarter supported by consistent contributions across passenger, light commercial and heavy commercial segments.

Business buyers drive commercial vehicle growth

Light commercial vehicles contributed strongly to the overall uplift, with 4,319 units registered in March – an increase of 40.2% compared with March 2025. Business demand remained the primary driver of activity within the segment, accounting for 81.4% of light commercial registrations.

The Toyota Hilux maintained its position as the top-selling light commercial model with 1,182 units, followed by the Ford Ranger with 1,036 units. Both models saw significant increases compared with the previous year.

Heavy commercial vehicles also showed strong growth, with 528 units registered in March – up 28.8% from March 2025. Battery electric vehicles accounted for 52 units within this segment, representing a notable share of monthly growth.

The current market performance is occurring against a backdrop of uneven economic conditions, with fuel price increases linked to ongoing geopolitical disruption contributing to rising cost pressures across households and businesses.

Hybrid vehicles continue to maintain a steady presence across the market with 3,922 registrations in March, while internal combustion vehicles remain the largest component of registrations at 7,125 units, although their share has moderated to 47.8% from 62.1% in March 2025.