FLEETDRIVE
New Zealand : A Challenging Year for Sales
In contrast , New Zealand ’ s car market faced difficulties in 2024 . New vehicle sales decreased by 13.5 per cent , equating to 20,212 fewer vehicles sold compared to 2023 . The Toyota RAV4 led sales with 10,540 units , capturing an 11.8 per cent market share .
A significant factor contributing to the downturn was the termination of the Clean Car Discount scheme on January 1 , 2024 , which had previously incentivised the purchase of lowemission and electric vehicles ( EVs ). The scheme ’ s end led to a sharp decline in EV sales , with only 6,341 new EVs registered in 2024 — a 70 per cent decrease from the previous year .
The removal of rebates and the introduction of road user charges for EVs from April 1 , 2024 , further discouraged potential buyers . Additionally , upcoming increases in ACC levies are expected to raise ownership costs for EVs , potentially impacting future sales .
Economic factors , including a weakening economy and rising interest rates , also made it more challenging for consumers to afford new vehicles . In response , many buyers turned to the used car market as a more affordable alternative .
Looking Ahead
Australia ’ s car market remains robust , but economic challenges , such as high interest rates and living costs , may dampen sales in 2025 . The shift towards hybrid and electric vehicles is expected to continue , driven by consumer demand and potential government incentives .
Meanwhile , in New Zealand , the automotive industry faces the task of revitalising EV sales without the support of previous incentives . Dealerships and manufacturers may need to explore new strategies to attract environmentally conscious consumers amid economic constraints .
Both countries will need to adapt to evolving consumer preferences and economic conditions to sustain healthy car markets in the future .
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