https://www.beehive.govt.nz/release/transport-drive-down-emissions

“Families who trade in their vehicle will receive support for the purchase of EVs, PHEVs and hybrids. By taking advantage of the Clean Car Upgrade, families will not only benefit from lower transport costs but will also be able to replace their high-emitting older vehicles with a safe and sustainable alternative."

Further details in this radio interview with the transport minister:

https://www.rnz.co.nz/audio/player?audio_id=2018842234

• Going to be targeting households at approx less than the median household income (cira $75k) - Exact value to be researched more.
• Approx max value of replacement vehicles $35k
• Max age of replacement vehicles 8 years.
• In contradiction to the above states they want to be bringing NEW, clean vehicles into the fleet.
• Flexibility for people to take up other clean transport options (i.e. get an e-bike or Public Transport pass in return for scrapping their vehicle.
• Details TBA

I note that this has already been discussed in the EV News thread, but given the policy also covers (non plug in hybrids), i figured a new thread is justified.

In terms of my own thoughts on this.

• Not a big fan of scrapage schemes. Destroying functional cars doesn't seem like a great environmental outcome.
• International examples (such as US cash for clunkers) have been deemed to be poor value for taxpayer money.
• NZ Trials in 2007 and 2009 concluded with "This showed that a nationwide scrappage scheme is unlikely to be cost effective." https://www.transport.govt.nz/about-us/what-we-do/queries/vehicle-scrappage-trials/
• The Targeted nature of the scheme will make it less efficient at reducing emissions than an untargeted scheme.
• Running costs of car's can be a major contribute to financial difficulty for those living in car dependent locations. Perpetual cycle of of: - can't afford housing in a location that isn't car dependent - Hence need car to access work, medical, supermarket etc. - can't afford car that dosn't suck, or to maintain it properly - Leads to very high running costs (fuel and repairs) compared to somebody who could find say $10k capital for a toyota aqua, fielder hybrid or similar. Potential massive social gains if we can break people out of this cycle.
• $569m is a heap money.
• Seems to be lower hanging fruit, like removing the exemption from emissions standards and from clean car fees for used imports more than 20 year's old.
• $35k is quite a lot to spend on a car with a $75k household income, but potentially could offer lower total cost of ownership than a succession of thirsty and unreliable $1 - $3k cars.
• $35k cap means almost all cars covered in the scheme, will be used (would need to insist they be fresh imports if the goal is to change the fleet mix). Although a new Yaris hybrid is cheap enough to fit under the cap, and it is exceptionally efficient at 3.3L/100km.
• The focus on used cars is going to mean the NZ fleet will be shaped based on what is available used ex japan. This means a heap of the likes of Toyota Aqua's, and relatively few plug in vehicles (they aren't that popular in japan, and NZ is fairly close to fully utilizing that resource.
• I think, given it is 2022 now and the scheme will take a few years to kick in, that the focus should be on pure EV's. Frankly the like's of Toyota (non plug in) Hybrids are a mature tech, and don't need subsidies.
• Given constraints around used EV's car's from japan I feel it is essential the focus need to be on new cars. - Perhaps something like bulk order of something 10's of thousands of MG5 EV's, BYD E6's or similar which can then be made available via some kind of social lease or finance program.