Demand for electric vehicles in New Zealand is surging, so much so that dealerships are reporting cars are being effectively “sold off the boat” – snapped up by buyers before they even arrive in the country. The trend, fueled by rising petrol prices and a growing awareness of sustainable transport options, is putting a strain on supply and prompting dealerships to proactively source vehicles from overseas.
The latest figures from the Ministry of Transport confirm the dramatic shift. In the week ending March 22, 1033 new and New Zealand-new electric and plug-in hybrid vehicles were registered, a stark increase compared to the 225 registered during the same week last year. This represents the strongest weekly result since the end of the Clean Car Discount scheme at the start of 2024, with EVs and hybrids now accounting for one in five new vehicle registrations.
The rapid increase in demand isn’t simply a response to environmental concerns; it’s increasingly a financial calculation for Kiwi drivers. Petrol prices have been steadily climbing, making the long-term cost savings of electric vehicles – particularly when combined with lower running costs – increasingly attractive. This is playing out in dealerships across the country, where customers are making quick decisions.
A Rush on Electric: Demand Outstrips Supply
The situation is described by some in the industry as reminiscent of the early days of the COVID-19 pandemic, when demand for certain goods far outstripped supply. Geary Sutjahjo, an EV specialist at GVI Kiwi, explained the urgency. “We’ve sent two of our buyers to Japan. We’re trying to secure them in as quick as possible for everyone,” he said. The company is actively working to secure vehicles before they even reach New Zealand shores to meet the growing customer base.
Other dealerships are reporting similar experiences. Staff at Kia Auckland Central say that vehicles on the showroom floor are already sold, and many customers are securing purchases from upcoming shipments. “There was only one EV left on the floor,” said general manager Tim Owen. “The question from customers is, what EVs do you have?”
The speed of the sales is also notable. Richard Hanson, a recent EV buyer, described bringing forward his purchase decision due to global events and the rising cost of petrol. “We’ve gone from rolling up to the petrol pump for $400 to charging our EV at home for free,” he said.
Banks Respond to Increased EV Interest
The surge in EV sales is extending beyond car lots and into the financial sector. Banks are reporting a significant increase in loan applications for electric vehicles. Westpac has seen EV loan applications roughly double in the past two weeks, while BNZ reports a 66% increase in views of its “Better Future” home loan top-up offer – half of which are being used for electric and hybrid vehicle purchases. BNZ’s Better Future Home Loan allows customers to borrow additional funds for sustainable home improvements, including EV purchases.
ANZ has also noted a slight increase in customer inquiries regarding its Good Energy Home Loan, which can be used for EVs, chargers, and home upgrades. Since its launch in 2022, the loan has been used by over 21,000 households, with more than $850 million in lending drawn down. ANZ’s Good Energy Home Loan provides discounted interest rates for energy-efficient home improvements, and vehicles.
Beyond Cars: A Rise in E-Bike Demand
For those unable to secure an electric car, or seeking a more affordable alternative, e-bikes are also experiencing a surge in popularity. Maurice Wells from Electric Bike Team described the current demand as “like Covid all over again.” The increased interest is driven by both the desire to avoid high fuel costs and the benefits of active transportation.
Johannes Jacobs, an Auckland commuter who recently purchased an e-bike, highlighted the financial benefits. “I’m buying the bike because I think I’m sick and tired of sitting in traffic in Auckland,” he said. He estimates saving a significant amount of money by switching from petrol to electric power. “For me, it’s $25 a day. You extrapolate that out over a year, a month, a week – it’s a lot of money.”
The current surge in demand for electric vehicles and alternatives like e-bikes is likely to continue as long as fuel prices remain high and awareness of the benefits of sustainable transport grows. The next key indicator to watch will be the release of vehicle registration data for April, which will provide further insight into whether this trend is sustained.
What are your thoughts on the shift to electric vehicles? Share your experiences and opinions in the comments below.
