The Motor Industry Association (MIA), the organisation that represents new-vehicle importers/distributors in New Zealand, has highlighted was it sees as several problems with Government changes made to the Clean Car Discount (CCD) programme.
Among the changes announced are a reduction of the rebates on EVs, a narrowing of the "zero band" that means most petrol-electrified hybrids (HEVs) no longer receive a Discount, and an increase in the top penalties for high-emitting vehicles. They all come into effect on July 1.
"Our most significant concern is the timing for the CCD change," says MIA chief executive Aimee Wiley (above). "Such a short notice period for industry to prepare for 1 July CCD changes, will cause difficulties for the new vehicle sector for two key reasons.
"The first relates to makes and models that have long wait lists, and where customers have paid deposits in advance for those vehicles and have an expectation
about the overall purchase price for those vehicles.
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"The second relates to forward supply orders that have already been committed to by new vehicle importers and distributors. A longer notice period for these changes would have enabled industry to have adjusted some of those orders in the light of upcoming changes to CCD rebates and fees."
The MIA says it anticipated a reduction in rebates, an increase in fees and adjustment to the bands for eligibility for rebates. But it also says reducing the point at which a rebate begins (reducing from 146 to 100g of CO2/km) could have an adverse effect on clean car progress, because few HEVs will qualify for cash back after July 1.
"The MIA is concerned about the potential impact to sales of non plug-in hybrid vehicles. If sales for these vehicles drop because they no longer attract a CCD rebate, this could negatively impact the downward trend of CO2 emission improvements from vehicles entering the NZ fleet," says Wiley.
Meanwhile, Neeraj Lala, the chief executive of Toyota NZ - the country's biggest car brand - says he is "saddened" by the changes.
The CCD tweaks will hit Toyota hard because it's focused on non-plug-in hybrids, which enjoyed substantial rebates under the previous CCD rules. The brand has no BEVs as yet: the BZ4X doesn't launch until later this year. It also sells a lot of Hilux utes, which are now even more heavily penalised.
“Many of our customers have placed orders in good faith for both high and low emission vehicles with a clear idea of what the rebate or fee will be as part of their affordability decision,” says Lala.
“As a brand, we hold the relationship with our customers at the heart of what we do, so I am saddened by the fact that many of them, who have waited extended periods for their vehicles due to us not being able to supply them fast enough, will now be penalised by either reduction of rebate or increase in fee with very little notice.”
“Unfortunately, the Clean Car Discount scheme is a relationship between the NZ Government and the consumer, but ultimately this decision impacts their relationship with our brand.
"I would like to reiterate to those customers who believe, like we do, that hybrids are a good transitionary technology that we will continue to offer them alongside our next generation of full battery electric vehicles over the next 18 months,” says Lala.
Unsurprisingly, Drive Electric, a prominent organisation that promotes EVs and has a number of high-profile business, automotive retail and energy company leaders on its board, is enthusiastic about the continuation of the Discount and the even-sharper focus on EVs.
“Research has shown that the Clean Car Discount is popular with NZers, so let’s keep it going until we get close to price parity between EVs and petrol cars," says Drive Electric chair Mark Gilbert (above). "This discount won’t be needed forever - perhaps only another few years. In the meantime, it makes sense for the government to make the design of the scheme fiscally neutral.
"While we’ve made some great progress increasing new EV sales, at the end of 2022, there were still only 65,000 registered EVs. This is still just 1.5 per cent of the entire vehicle fleet. There’s more to do."
Gilbert also says that with recent policy changes getting rid of social leasing and scrappage schemes, Drive Electric would welcome more incentive for fleets to take up EVs, as these vehicles are generally resold into the private sphere after 2-4 years.