Fuel tax rise increases EV interest

An increase in petrol taxes and road user charges on July 1 is helping drive people to EVs.

EV dealerships around the country report a growing interest in EVs during the past few weeks, particularly with petrol up about four cents a litre and road user charges (RUC) rising 5.5%.

The petrol tax rise of three cents a litre (with GST taking it to nearly four cents) is the second of three annual increases by the Government, adding to the 11.5 cent increase for Auckland last year.

The Automobile Association says the fuel price rise will add $45 to motorists’ bills annually, based on a medium car driving 14,000km a year.

Hamilton Electric Vehicles’ Nicholas Down says every announcement regarding tax increases on petrol always creates more interest in electric cars.

“This interest isn’t an instant increase in sales but the flow-on effect when people grasp the concept and affordability of electric, minimal maintenance and affordability, then the sales demand occurs,” he says.

“Three of our sales last week were as a direct result and conversation about the effect this increase would have on their budget and weekly increase.

“It is causing real pain in the wallet for the consumer as Labour keeps increasing taxes.”

Down says the lack of clear direction from the government regarding EVs is unacceptable, especially with no assistance to increase private EV uptake.

He says many corporates can already gain benefits and incentives for introducing EVs. “But the families and private car owners are the ones that are hurting the most,” Down says.

“If the Government is serious about this and not just paying lip service then they should make policy changes as urgently as they did to change the gun laws.”

Martin Harwood of Harwood Cars in Auckland says the dealership has had more enquiries about its Nissan Leafs during the past week or so.

He says many are asking about the cost of running them, one woman saying it would save her $3500 annually, plus the company she worked for put in an EV charger.

Harwood is also critical of the lack of Government action on EVs.

Genuine Vehicle Group’s Hayden Johnston says Aucklanders are very reactive to fuel price increases. “So when they are first announced we notice an increase in sales of EV/hybrid and smaller engine vehicles, but people quickly accept the additional spend and carry on with life.”

Johnston believes the pump price will eventually increase so much people won’t be able to ignore it and, like quitting smoking due to increased cost, people will also have to quit their fuel hungry vehicles in favour of a more economical option.

Henry Schmidt of Autolink Cars in Auckland says EV sales have been steady but he is uncertain whether the fuel tax rise is having an impact.

“It’s not a surprise the fuel tax increase was coming and we might see a lift later.”

National’s finance spokesperson Paul Goldsmith says the Government is taking an extra $1.7 billion over three years from New Zealanders through its fuel tax increases, road user charges, petrol excise and Auckland regional fuel tax.