What does the governments Clean Car Programme mean for you?
To encourage an uptake of low or no emission cars to support reduced CO2 emissions, the New Zealand Government implemented its Clean Car Feebate Scheme also known as the Clean Car Discount. This is part of a plan to reduce greenhouse gases to 30% below 2005 levels by 2030. Approximately half of New Zealand’s CO2 emissions come from transport, of which two-thirds come from light vehicles – cars, SUVs, vans, utes and trucks under 3.5 tonnes.
Currently, the Clean Car rebates apply to both new and used import Battery Electric Vehicles (BEVs), and Plug-in Hybrid Electric Vehicles (PHEVs). They must be under $80,000 including GST and on-road costs, be a new registration and have a 3-star safety rating or above. The Clean Car rebate scheme only applies to BEVs and PHEVs that are registered between the 1st July and 31st March 2022.
Subject to Government legislation that is currently under consideration, from 1 April 2022 the Clean Car Standard will be based on the CO2 emissions of all new and imported light vehicles, when they are first registered in New Zealand. Those with zero or low emissions would qualify for a rebate and those with high emissions would incur a fee. The program is expected to prevent up to 9.2 million tonnes of CO2 emissions and is designed to help customers with the upfront cost of switching to an electrified or low emission vehicle.
Toyota believes that a multi-powertrain strategy focusing on different low emitting engines is the best way to reduce carbon emissions as a country, while still meeting varying customer needs. For instance, a plug-in Prius may suit you as a commuter car to get from Picton to Blenheim each day but perhaps not the best choice for a day in the Canterbury High Country.
We hear a lot from our customer’s commenting on the inability to choose a low emission alternative for their line of work and therefore may be facing a fee for choosing a vehicle suitable for their requirements. While the legislation and timing isn’t something we can directly control, something we have been considering is the potential impact on used vehicles – and cost-to-change into a new replacement if you are considering trading in. Our experience in the areas we operate in has always seen strong demand for good quality Hilux's, Land Cruisers, Prados, and the likes.
Demand drives the pricing of these vehicles and when anyone is comparing a good quality used vehicle to a new replacement, the price difference is near the top of the comparison list. If a fee is added to the new vehicle being compared, then logic would suggest this will form part of the comparison for the good quality used vehicle, potentially lifting the used vehicle values as has been the case recently with less availability of new vehicles. Time will tell if this is the case but something worth considering if this is a concern of yours.
While the supply of BEVs and plug-in hybrid electric (PHEVs) vehicle will increase over the next few years, Toyota believes that hybrids remain the best alternative today to start the CO2 reduction journey with new hybrids nearing price parity with petrol versions. They are also more abundant on the used vehicle market and the range of vehicles are suitable for a wide variety of Kiwi uses.
Hybrids have contributed to an average CO2 reduction of 20g/100kms across the hybrid Toyota range. As a result, Toyota is on track to meet its Clean Car CO2 target of 164gm/km before the target date of 2023.
Toyota’s EV range will soon be expanding with the introduction of 16 new electrified vehicles over the next five years, including at least six zero-emission products.
Although some big changes are coming in the technology used to power our cars and perhaps in how we use vehicles, we believe that we have the best brand to deliver exceptional products for a sustainable future.
Read more about Toyota's commitment to the Clean Car Program here.