EV interest surges, Westpac research shows

Westpac New Zealand says demand for electric vehicles is increasing sharply as rising fuel prices drive changes in consumer behaviour.

A nationally representative survey of 414 people found 42% of respondents were very concerned about the financial impact of the Middle East conflict, while a further 38% were somewhat concerned.

Meanwhile, 41% say they have already reduced how often they drive to manage fuel costs, while 28% have cut non-essential spending and 26% have changed how they shop for groceries.

Westpac managing director of institutional and business banking Reuben Tucker says interest in EVs has risen quickly through the bank’s home loan top-up and EV loan offerings.

“In the last two weeks the number of applications for EVs through these products has roughly doubled,” Tucker says.

“We’re the only bank to offer interest-free lending on EVs and chargers, which is a key way we can help customers manage higher living costs not just now but in case of future events,” he says.

The survey also found 45% of respondents are considering driving less in the coming months, while 39% are looking to reduce non-essential spending.

Westpac says some sectors are already feeling the impact of rising fuel prices, particularly transport, manufacturing and agriculture.

“Transport companies are feeling the pinch of increased fuel prices. Some have contract clauses that allow them to pass some of these costs on to customers, but others are being forced to absorb the added cost,” Tucker says.

“The longer the conflict goes on, the higher the risk of supply chain disruptions and cost increases to our business customers,” he says.

“Many businesses are already doing the work of looking for alternative sources of supply, or deferring large investment plans.

“The good news is our customers’ finances are in generally good shape heading into this period of elevated prices. Most households are still rolling onto lower interest rates when they re-fix their home loan, and a higher proportion of households are more than three months ahead on repayments than they were 12 months ago,” Tucker says.

Westpac says while households are generally in a stable financial position, it is encouraging customers to review their finances and seek support if needed.