New Zealand announces rebate for EV buyers

New Zealanders will be able to get up to almost NZ$8700 back from the cost of a new electric vehicle thanks a new scheme announced today, aimed at reducing the country’s carbon emissions.

From July 1 this year, car buyers can get NZ$8625 (AU$7978) off the cost of a new battery electric vehicle (BEV) or NZ$5750 (AU$5319) off the price of a new plug-in hybrid (PHEV).

Used imported cars will also be eligible too, with NZ$3450 (AU$3200) knocked off the sticker price of a BEV and NZ$2300 (AU$2128) from a PHEV.

The discount will apply only to new and used vehicles registered in New Zealand for the first time under NZ$80,000 (AU$74,000) drive-away and with more than a three-star safety rating as published on the county’s Rightcar website.

Dubbed ‘The Clean Car Discount’, the subsidy will be offered as a rebate, meaning the purchaser must buy the vehicle first and register it between July 1 and December 31 2021 before applying for the money back. Applications can still be made on vehicles registered during this time until February 28, 2022.

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Kia Niro electric

Cars available under the scheme include the MG ZS, which would be priced at NZ$40,365 (AU$37,338) before on-road costs, and the MG HS plug-in hybrid, now starting from NZ$47,240 (AU$43,697) before on-roads.

A new Nissan Leaf meanwhile, after the discount, would set buyers back NZ$53,365 (AU$49,363), and a new Kia Niro BEV NZ$69,365 (AU$64,163). A new plug-in Niro will now cost NZ$34,240 (AU$31,672).

According to NZ’s transport agency Waka Kotahi, if the scheme is so popular rebate funds are exhausted, it will stop the offer until it once again has enough cash in its coffers to jumpstart it – with only vehicles registered after the restart date eligible for the refund.

The measures were announced by NZ Transport Minister Michael Wood and Climate Change Minister James Shaw today, alongside new ‘Clean Car Standard’ rules relating to fossil-fuel powered cars.

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Nissan Leaf

Buyers purchasing high-emission vehicles will pay the price for the EV subsidy – the higher the CO2 rating, the greater the fee.

Full details of the scheme are understood to be coming from Waka Kotahi later this year.

“New Zealand is actually lagging behind on the uptake of EVs, so we are playing catch up internationally. Our monthly registrations of EVs are around half the global average and sales are well below the 50 per cent of monthly sales seen in some European countries,” Minister Wood said.

It is expected to raise between NZ$125m (AU$116m) and NZ$188m (AU$174m) in its first year – and the revenue from the fee was expected to fully fund the rebates on electric vehicles, according to the New Zealand Herald.

The Clean Car Discount aims to reduce CO2 emissions of light vehicles in New Zealand. Its objective is to make it more affordable to buy low CO2 emission options by making their cost more comparable to petrol and diesel-fuelled vehicles.

“The policy only applies to new and used cars arriving in New Zealand, so the existing second-hand market of cars that lower income families tend to purchase from will not be affected," Mr Wood added.

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MG ZS electric

But the decision to tax traditionally fuelled cars has some up in arms, with critics saying the “feebate” scheme amounts to "taxing the tradies to subsidise Teslas”.

The country’s National Party transport spokesman Michael Woodhouse told the NZ Herald his party did agree with financial incentives for people to buy electric vehicles, "but does not agree with financially punishing those who can’t."

"The people who benefit will be higher-income earners who now don't have to pay as much for a Tesla. We don't think it's fair to make tradies pay more for a Hilux so wealthy executives can get a discount on their next electric car,” he said.

The news in New Zealand follows an announcement by the Victorian Government here in Australia at the beginning of May that it wants half of all new cars sold in the state by 2030 to be electric – incentivising people to buy by offering subsidies of up to AU$3000.

The State Government revealed it will provide 20,000 subsidies for Victorians to take up electric vehicles up to the value of AU$69,000.

In total, the Andrews Government has put aside AU$100 million for the project.

As part of the deal, AU$19 million will fund new charging stations state-wide and AU$10 million will go towards the cost of expanding the Government’s EV fleet by 400 vehicles over the next two years.