Two in three Kiwis consider buying an EV

While 67% of Kiwis would consider an EV for their next car, that figure is down on last year’s 74% – possibly because of COVID-19 hitting the economy and people’s pockets.

That’s according to Trade Me Motors head Alan Clark in releasing Trade Me’s latest annual EV survey.

Nearly 3000 participated in the survey which looked at Kiwis’ EV perceptions.

Clark says the drop is not surprising given the impact of COVID-19 on Kiwi’s wallets and the wider economy.

“There are plenty of New Zealand households taking a look at their spending at the moment and making the switch to an electric vehicle might not stack up when they have cheaper alternatives during this uncertain time.”

Considering factors deterring participants from getting an EV, the survey shows that money is key. “The initial upfront cost of an electric vehicle was the number one reason participants said they would not buy an EV, with 69% of Kiwis seeing this as a barrier.”

Other high-ranking concerns include range (54%) and battery life (46%).

Clark expects cost to become less of an obstacle as prices drop in coming years.

“While EVs have been around for about eight years now, it’s only been in the past few years that we’ve started to see the average price of an EV decrease as more second-hand EVs hit the market.”

Clark say there has been much talk about incentivising Kiwis to purchase an EV, with the government discussing a variety of subsidies.

“We expect this topic to come up again as we get closer to the (October 17) election and work towards the government’s goal of 64,000 electric vehicles on our roads by the end of 2021.”

Hybrids have overtaken EVs as the most popular non-fuel option, the survey shows.

About 22% of those surveyed would most likely purchase a hybrid as their next vehicle, compared to just 12% who said they would most likely purchase an EV.

“A further 21% said they were not sure which type of car they would buy next – many of whom might be weighing up hybrid and EV options.”

Clark puts this shift down to three factors – technology, practicality and price.

“With recent developments, we are seeing owners of plug-in hybrid cars now using the electric function almost exclusively, but still preferring the flexibility of being able to switch to fuel should they want to.”

Lower ongoing costs and environmental reasons were key for Kiwis buying a hybrid, but size and practicality are another priority.

“With more models on the market, it is not surprising hybrids are perceived as slightly more practical,” Clark says.

“It will be interesting to see if this changes over time as EVs become more accessible.”

Hybrids are also cheaper to buy than an EV.

“In July, the average price of a hybrid was $14,122, while the average price of an EV was $17,070,” Clark adds.

He says it’s fascinating to see New Zealanders’ love for the environment (22%) trumping cost savings (14%) as a motivation to move towards an EV.

“The lockdown period had an impact on this too, the survey found that those aware of the lockdown’s positive impact on the environment were also more likely to consider purchasing an EV.” Clark says.

“Participants were 13% more likely to consider an EV for their next car if they knew about the improvement in air quality globally as a result of the COVID-19 lockdown.”

However, Kiwis severely underestimate EV range – similar to what an Electric Vehicle Council survey

found among Australians.

On average, range expectations were 43% lower than actual capability, Clark explains.

He says some guessed models like the Nissan Leaf could travel 168m on a full charge when they can actually travel more than 200km.

“Educating Kiwis on this, and other perceived barriers to purchase, will be a vital consideration for the government to meet its 2021 goals.”

Those who had driven an EV before were 8% more likely to consider buying one, increasing to 13% if friends or family owned one.

“On the other hand, Kiwis were 15% more likely to buy a petrol or diesel car next if they did not have family or friends that owned an EV,” Clark says.

Of the age groups surveyed, Millennials (74%) were the most likely to consider buying an EV, while Baby Boomers (59%) were the least likely

Aucklanders (72%) and Wellingtonians (71%) were most open to EVs among the regions.

Clark says EVs may be better suited to city dwellers who have charging stations readily available and don’t need to factor in things like towing which impact on a car’s range.