The Government’s actions to increase New Zealand’s uptake of low-emissions vehicles announced today is a well-balanced and positive package, says the AA.

The measures will introduce rebates of thousands of dollars for those purchasing new or used electric or hybrid vehicles from July 1, add a levy to higher-emitting vehicles like utes when they are imported and advances plans for New Zealand to use more biofuels to reduce emissions from internal combustion engine vehicles.

A feature of the rebate scheme that the AA was very pleased to see was that it will be linked with safety and cars will need to have at least a 3-star safety rating to be eligible.

“Reducing emissions from transport is going to take a mix of actions for new vehicles, used vehicles and the fuels that vehicles already on our roads run on and this package from the Government takes good steps on all fronts,” says AA Policy and Research Manager Simon Douglas.

“Including used vehicles and hybrids will help broaden the impact of the scheme and it’s good that vehicles with low safety ratings won’t be eligible for the rebate.

“This is a complex area and the regulations will no doubt need to be adjusted and tuned over time but it will give a good foundation to start from as New Zealand moves towards a greener vehicle fleet.”

The emissions levels that have been set for when imported vehicles will attract a penalty are pragmatic and will mean increased costs for high-emission vehicles but will leave a good range of vehicles with no penalties available as well.  

The measures will bring New Zealand in line with many other countries around the world in terms of incentivising buyers towards lower-emissions vehicles and it will be interesting to see what impact this has on the market in the years ahead.

Utes like the Hilux and Ranger have been some of the biggest selling vehicles in New Zealand in recent years but they will face about an extra $3000 penalty from 2022. 

The AA strongly welcomes the Government’s discussion document on how New Zealand can advance our use of biofuels as we see these playing a key role in greening the fleet.

“We want to see the Government investing to accelerate biofuels, and other low or no carbon options. New Zealanders will be driving internal combustion cars for well beyond the next decade and biofuels have the potential to meaningfully reduce the emissions from those vehicles,” says Simon.

For more information contact:

Simon Douglas
Policy and Research Manager
New Zealand Automobile Association
M. 021 607 647
E. sdouglas@aa.co.nz