The new car shuffle
Government changes have caused newvehicle segments to reshuffle this year
With the introduction of the Government’s Clean Car Discount from July 1 last year, we started to see a reshuffle among the popular vehicle segments. An example of this change has been a surge in the popularity of electrified vehicles, with a 307 per cent increase in sales of battery electric vehicles (BEVs) and plugin hybrid vehicles (PHEVs) combined last year.
The move to electric
The Tesla Model 3 had a record month in March, reaching a total of 949 sales and setting another record, taking top spot overall for the new passenger car segment — a first for an electrified vehicle.
The Model 3 was voted the most popular vehicle by more than 50,000 New Zealanders in the AA DRIVEN Car of the Year 2021 People’s Choice award — a fitting tribute to a model that, while not new, still resonates with vehicle buyers.
Clean Car Discount
The segment reshuffle continued as we headed into the second stage of the Government’s Clean Car Programme, which came into full effect from April 1 this year, providing a range of rebates for new and used imported lowemission and hybrid light vehicles and fees for higher-polluting vehicles based on CO2 ratings.
Demand for BEVs was even stronger with registrations up by a whopping 309.5 per cent on last year. The popularity of commercial vehicles — particularly utes — was not such a surprise given the new Clean Car fee structure was about to come into play, and the feebate scheme certainly also accelerated the number of used imported cars registered, which more than doubled in March over the previous year.
Will these changes continue?
Various market influences in addition to the Clean Car Discount, such as supply chain and global chip shortages, have shaken things up from the pre-Covid period where we saw a relatively predictable order of vehicle segments each month.
With the unpredictable nature of the automotive market over recent months, have we seen things settle or is there more to come?
Since the mass registration of fee-attracting vehicles in March, April saw used imported cars slump by 35.7 per cent and new commercials tumble by 71.7 per cent. For the first time in more than a decade, a ute didn’t make it into the top three for the month.
The top-five new passenger vehicles were either hybrid or PHEV models. These shifts reflect the availability of cars, but also may suggest the Clean Car Discount has swayed consumers towards lower-emitting options.
Figures released by the Motor Industry Association (MIA), the organisation that represents new car distributors, showed a significant month-on-month decline — the lowest April since 2015 for new car registrations.
At a time of rising fuel costs and squeezed household budgets, it’s no surprise that small and electrified cars saw the largest gains in sales during April, with these segments being arguably the biggest benefactors of the Clean Car Discount’s second round.
With the increase in fuel costs and growing concerns about the environment, new fuel-efficient cars are now an even more attractive option. The top 20 new passenger car line-up has been traditionally dominated by large SUVs and higher-emitting vehicles. What was different in April was that Suzuki, a marque known for its stylish and frugal small-car line-up, saw four of its models placed in the top 20 for the month. The popular Swift (fifth), followed by the Baleno (14th), Jimny (17th) and Ignis (19th).
How have used imports been impacted?
Imported used car dealers who have plenty of stock of low or zeroemission vehicles such as the Toyota Aqua, Prius, and Nissan Leaf BEV did well in April, as consumers searched for ways to reduce vehicle running costs.
The used import industry also continues to feel the impact of the supply chain — particularly from Japan, although this is expected to adjust in coming months. In April vehicle imports were down by 11.6 per cent and registrations were also predictably down 35.7 per cent.
Hybrids increase in popularity
There has been quite an increase in the popularity of hybrid and PHEV vehicles, as more models become available.
Petrol hybrid vehicle sales were expected to shoot up in April following the Government’s Clean Car Discount coming into play, with some buyers delaying purchase to take advantage of the rebate. Hybrids sold in April were up 94.6 per cent compared with the previous year.
The three best-selling petrol hybrids for the month were the Toyota RAV4, the Honda Jazz and the Toyota Corolla. Interestingly, wait times for hybrids are increasing, with some models not being delivered for 13 months from date of order.
Registrations for PHEVs were strong in April also, up a massive
783.3 per cent compared to the previous year. Year-to-date, volumes are ahead of last year by
395.5 per cent.
The three best-sellers for the month were the Mitsubishi Eclipse Cross, the Mitsubishi Outlander and the MG HS.