NZ Fuel Type Sales : 2023

New Zealand introduced a clean car scheme where cars attract fees or rebates according to their emissions or lack of. Some in the middle of the spectrum were fee neutral. Ideally, it was supposed to pay for itself but in reality, it wasn't balancing ingoings with outgoings. Not by a long way. 

Considering electric and hybrid sales haven't been exceptional, I don't know why it wasn't possible to calibrate things to get close to or be neutral regarding cost. While promoted as a success, the scheme was realigned (scaled back) as of July 1st, 2023 so that the deficit could be reduced or even better, break even. 

Then late in the year an election loomed and the opposition said they would scrap the scheme if elected. That happened and by mid December, we learned that the rebate/fee system was ending in a couple of weeks. 

This created a temporary rush for cars that gained a rebate while fossil fuel car sales went quiet. 

The outcome of that was electric cars jumped to 36% of sales in December (yearly average 15%).  The full year summary is the first chart above. 

It will be expected that 2024 will see a shift back in the direction of fossil fuel vehicles. January will surely be a huge swing as delayed ICE sales are then completed. 

For many, ICE vehicles are not what they need and/or want so rebate/fee or not, I think a ceiling of sorts was getting close anyway. 

If electric will not work for many, there are hybrids but it takes years to break even due to the initial extra cost. The pendulum would have continued to swing in favour of electic/hybrid but very slowly as they simply be suitable for everyone. With the incentives gone, some regression. The only issue is by how much.

For those interested in electric only sales by brand, see the chart above and to the right. 21,511 were sold in 2023 and 16,068 in 2022.

Data source: MIA.