Westpac New Zealand backs EV ownership

Westpac New Zealand has published an article diving into the electric vehicle purchasing and ownership experience. It ultimately describes the switch as “worthwhile” to the Kiwis considering it; but only so long as their use case fits certain criteria.

The article included testimony from a plug-in hybrid owner, as well as comments from EV advocacy group Drive Electric, and Winger Hamilton general manager Michael Bryant.

It also included comment from Westpac sustainability lead Kate van Praagh, sustainability team senior manager Olaf Adam, and senior manager of transformation Dan Harris. Interestingly, each Westpac team member held a different position on EV adoption.

Through the different perspectives, the article detailed some of the pitfalls of electric vehicles and the ownership experience attached, while underlining some of the key benefits. It concludes that EVs are a valid choice for many New Zealanders.

“Even with the government subsidy, EVs and hybrids are more expensive to buy than petrol cars. However, if you have the budget to pay that cost and your mileage is more than 50,000km per year, the annual cost savings going forward make the EVs worthwhile,” says the article, which can be read in full here.

Westpac New Zealand is a noted early adopter of electric vehicles in its own fleet. In 2018 it announced it would be replacing a third of its vehicle fleet with EVs, confirming that the feat had been achieved by November of 2019.

“This reduction will be achieved by a range of actions and the government EV subsidy is a welcome initiative that will help to inject greater numbers of EV’s into the local market,” said Dan Harris, Westpac senior manager of transformation.

“The subsidy has already shown signs of stimulating new EV purchases and over time these vehicles will be moved into the used vehicle market.

“The subsidy, increased volumes of new and used vehicles along with other initiatives such as the ongoing improvements in the numbers and locations of EV chargers to reduce range concerns, will assist with EVs becoming a more realistic choice of vehicle for a greater number of New Zealanders in future.”

Sustainability lead Kate van Praagh encourages people to look beyond cars. “There are so many ways we can travel short distances without jumping into the car. We could walk, cycle, scoot or take public transportation instead,” she said.

 “Most car trips are under two kilometers, and we know that short car trips from petrol or diesel-powered vehicles produce a higher rate of carbon emissions per kilometer, compared to longer trips as cold engines use more fuel.

“Cars are still needed of course, but if you can’t afford an EV, there are still a range of lower emission small petrol vehicles you can choose from.”

Sustainability team senior manager Olaf Adam cited that he recently considered purchasing a used electric Nissan Leaf as a replacement for his family’s two-car fleet, consisting of a 1996 Toyota Caldina and a 2009 Hyundai Santa Fe.

But instead of selling both cars and purchasing a Leaf, he instead sold the Caldina and replaced it with a 2017 Skoda Fabia, while also keeping the Santa Fe. He explained that the decision still cut his family’s costs and emissions.

“This decision has cut our costs because the Skoda uses six litres of petrol per 100km and has become our main family car, whereas the Santa Fe uses 11.5 litres of diesel per 100km,” Adam explained.

He noted that he “could not have bought the same level of car in electric form for $20,000, even with a government subsidy”. It’s worth noting that a Mk1 or Mk2 Leaf is more than 400mm longer than the Fabia, and has 40 litres more boot capacity.

Westpac Australia recently confirmed plans to offer lower interest rates on loans for electric vehicles. Quizzed about the scheme last month, Westpac’s local arm confirmed that it would not be adopting the same scheme, citing the lack of a local dedicated autofinance division.

“But we are constantly looking at ways we can support our customers’ sustainability aspirations through existing products and services like sustainable finance for businesses, or our Westpac Warm Up interest-free energy efficient loan product for homeowners, as well as future offerings,” a Westpac New Zealand spokesperson added.