Kiwi EV rebates cop backlash

Despite its laudable emissions-reduction aim, a New Zealand rebate for full-electric and plug-in hybrid electric vehicle (PHEV) buyers is receiving mixed reviews.

Announced on Sunday, the Clean Car Package has drawn criticism because it excludes both low- and high-income earners and gains its funding from a new tax on higher-emitting vehicles such as utes and vans.

The package is offering a rebate up to $NZ8625 ($A8000) on the purchase of a new EV priced under $NZ80,000 ($A74,000) from July 31.

Buyers of a new PHEV can get as much as $NZ5750 ($A5300) back, while there are also rebates for used car buyers.

From 2022 the scheme will be calculated based on CO2 emissions and encompass all vehicles. Any vehicle emitting over 192g/km of CO2 will be hit with the tax.

To be eligible for the rebate any car purchased must also have a minimum three-star safety rating.

Despite the criticisms from some quarters, the NZ scheme is far ahead of any encouragement for EVs seen in Australia.

With no federal plan in place, state governments have invoked their own schemes. For instance, the Victorian government offers a $3000 purchase subsidy but also applies an EV road tax.

The NZ rebate is part of a wider basket of initiatives intended to aid the government’s plan to achieve carbon neutrality by 2050.

Among them is a commitment to instal public chargers every 75km on most state highways.

The $80,000 cap is one sticking point for opponents, who argue it excludes buyers in the market for more expensive EVs such as the Audi e-tron and Mercedes-Benz EQC.

But it’s a boon for the Chinese brand MG, which as in Australia offers the cheapest battery-electric vehicle available, the MG ZS EV. It will also soon add the MG HS Plug-In to its NZ line-up.

“This progressive EV strategy from the New Zealand government means that many more Kiwis will soon enjoy zero-emission sustainable motoring,” said Peter Ciao, CEO of MG Motor Australia and New Zealand.

However, it’s also being argued low-income buyers are excluded from the scheme because even with the assistance of the rebate EVs are too expensive for them to afford.

For instance, the MG ZS EV is still $NZ40,365 ($A37,400) at its adjusted price.

The tax on vehicles with higher emissions applies to new and used vehicles imported after January 1, 2022. Official figures showed a Ford Ranger or Toyota HiLux would incur a $NZ2900 ($A2670) impost.

NZ Prime Minister Jacinda Ardern was pressed on the price cap during an appearance on the AM Show TV program, but stood her ground.

“When you start buying a car over that price point, you’re less likely to be affected by the price point,” Ardern said. “I don’t think that’s an unfair assumption to make.

“If you value your rebate, get a car that comes in at a $60,000-$70,000 price point.”

Regarding the impact on low-income families, Ardern argued they tend to shop for used vehicles from current landed stock, so they won’t be impacted by the new import tax.

She also called for ute and van buyers to hold off on new purchases until electrified options became available.

The New Zealand Motor Industry Association (MIA) welcomed the rebate but moved to dispel suggestions by government ministers that electric utes would be available in the next 12-24 months.

“One or two brands are working hard to get in a fully electric ute, but our expectation is plug-in hybrid utes might become more widely available by 2025 and full battery-electric utes after that,” said MIA chief David Crawford.

“Speculation by ministers of when models are coming to the market is unhelpful and potentially misleading. At worst it becomes a death knell to business continuity.”