More than 7000 additional utes were sold in the first seven months of this year compared to the same period last year, with the surge attributed to buyers beating a new Government tax which comes into force in January.
That carbon emissions tax, estimated at $3000 a vehicle, will offset the price of electric and hybrid cars, part of a clean air discount package announced in June to reduce transport emissions.
From July, feebates of $8625 for new and $3450 for used became available for electric and hybrid cars, although it only applies to cars priced less than $80,000.
But sales of petrol and diesel-powered utes are growing.
Ministry of Transport (MoT) figures reveal 24,327 were sold from January to July compared to 16,989 for the same period a year earlier.
In the month of July, MoT figures show 1934 new and imported used electric and plug-in hybrid electric vehicles (PHEV) were registered, receiving $5.7m in rebates for 1422 qualifying vehicles.
Of those sales, 51 electric vehicles were registered to public authorities and qualify for rebates, with one claim for $3000 paid so far.
Motor Industry Association chief executive David Crawford expects sales of petrol and diesel utes to rise even further later in the year, with distributors in discussions with manufacturers to accelerate production.
“I would expect to see not only the rush on utes that we have already had in July, but more to be sold in the last quarter ahead of the feebate,” Crawford said.
He says he heard that the price of second-hand utes has also increased on the back of growing demand ahead of the new tax.
But there is some uncertainty with supply.
Normally distributors will have three to four months’ stock, but shipping disruptions since covid-19 have impacted vehicle manufacturing and shipping.
There are also supply issues with microchips used in motor vehicles that are also disrupting supply.
Crawford says light commercial vehicles, such as utes, constituted 21% of the national fleet in 2002 and 30% currently.
A Ministry spokesperson says Cabinet considered a fee exemption for those working in the primary and trades sectors, but it was felt such a scheme would be too difficult to administer.
The spokesperson says increasingly utility vehicles are purchased for for private use.
“The Clean Car scheme provides for a rebate or fee to encourage the uptake of zero or low-emissions light vehicles entering the NZ light vehicle fleet,” they said.
