...The first policy is the Clean Car Standard (which is a vehicle fuel efficiency standard). This policy would require vehicle importers to bring in progressively more fuel efficient and electric vehicles.

The second policy is the Clean Car Discount (which is a feebate scheme). This policy would make fuel efficient and electric vehicles more affordable for Kiwis to buy, potentially by a discount of up to $8000 for new vehicles and $2,600 on used vehicles.

The Clean Car Standard and Clean Car Discount would help us to significantly reduce the emissions from transport, and also result in fuel savings for motorists.

...The Ministry’s preliminary cost-benefit analysis of the proposed clean car standard indicates that it has a benefit-cost ratio of 3:1 and a net present value of $2.4 billion. That is, for every $1 of costs it would provide $3 in benefits. The largest share of the benefits comes from reduced transport costs to households.

...The Clean Car Standard should help to significantly reduce transport costs to households.

...When the Australian Government investigated a 105 gram CO2/km emissions target for its vehicle fleet, they estimated that the target could impose additional vehicle costs. These were estimated to be, on average, $747 for a new conventional vehicle in 2021 and $1,582 in 2025. The cost premiums for suppliers to provide EVs and hybrids could be $9,482 in 2021 and $7,548 in 2025

These cost estimates are likely to overstate what will be experienced here. This is because they only relate to new vehicles. Some commentators also predict that EVs will reach price parity with conventional vehicles sooner than the Australian estimates imply. If these costs were to eventuate and be passed on to consumers, officials estimate that lifetime fuel savings could, on average, outweigh the costs by a factor of around three to one.

The Ministry of Transport’s Social Impact Analysis suggests that households would, on average, be significantly better off as a result of the Clean Car Standard. The Ministry estimates that the increased supply of fuel efficient and electric vehicles could result in average fuel savings of $6,800 to a vehicle owner over the life of a vehicle. This means the country could save about $3.4 billion on fuel over the life of the vehicles affected by the standard.

...The Clean Car Discount will be timed to replace the exemption from road user charges that applies to electric vehicles. For light vehicles the exemption applies until December 2021, or until they make up 2 percent of the light vehicle fleet.

The Government is proposing to make electric, hybrid and fuel efficient vehicles more affordable so New Zealand families can choose a vehicle that’s better for the climate and their back pocket.

“The cars, utes and vans we use every day are also the fastest growing source of harmful climate pollution and account for nearly 70 percent of our transport emissions,” said Associate Transport Minister Julie Anne Genter.

“Most Kiwis want to buy a car that’s good for the environment, but tell us the upfront cost and limited choice makes it a challenge.

“This is about making cleaner cars a realistic choice for more New Zealanders – by reducing the upfront cost of electric, hybrid and fuel efficient vehicles when sold in New Zealand for the first time.

“Discounts will be financed in the fairest way possibly - by putting a small fee on the highest polluting vehicles when they’re sold in New Zealand for the first time. This means people will still have choice, while contributing to the task of cleaning up the vehicles coming into New Zealand.

“New Zealanders have also told us they want more climate-friendly vehicles to choose from, so we’re also proposing that vehicle suppliers be required to import more fuel-efficient vehicles every year.

“Vehicles already registered in New Zealand would be exempt from these policies when on-sold in the second hand market – so more than 70 percent of vehicles sold each year won’t be affected by these proposals.

“These changes would prevent more than 5 million tonnes of dangerous climate pollution going into our atmosphere and would make a major contribution to meeting New Zealand’s climate targets.

“The benefits of these policies would flow on into the second hand market as more fuel efficient hybrid and electric vehicles are sold on.

“These policies are expected to save the country more than $3.4 billion in fuel and result in fuel savings of more than $6,800 over the lifetime of an average vehicle”.

...Vehicles with a retail price of $80,000 or more would not be eligible for discounts. This cut off is to prevent the scheme transferring wealth to New Zealanders who are able to buy vehicles that cost $80,000 or more. All vehicles with high-emissions would incur fees irrespective of their retail price

the kicker is that the RUC Exemption is removed ,

So if the feebate is cost neutral across imports , this scheme is basically a reduction in the subsidy from government for EV users

People buying new cars definitely need subsidies that are more generous than in any other country, yep, absolutely. Won't someone think of old mate dropping $200K on a Model S? Bloke will basically be on skid row unless we get him $8k of taxpayer cash.

I just skimmed it now, its based on emissions not just EV's. Low to medium priced EV's get a better return, zero for Tesla, Kona priced EV's. Yes RUC is removed as it wasnt successful

I dont see how its free for taxpayers, if you need a larger car or are a tradie, get the chequebook out. It will help emissions though as it will push many to the smallest car they can manage, and help turn over older cars. Which this morning have halved in price as they are for the scrap heap, but that did need to happen.

This is an emissions goal not an EV move.

There are more effective ways of doing this; e.g. cash for clunkers, rebates that are attached to the age/emissions profile of whatever you trade in, sliding scales or even just an outright cap on the vehicle values that qualify for the subsidy.

The incentives Stop at 80K , although my worry is that it will basically kill Ev sales in 2020 while people wait , also there is a ramp down , which is going to push sales into the early years of the scheme

Weren't they talking about banning the Suzuki Swift EV because of safety issues? Now there's talk of a subsidy for buying them in?

Its 2020 in 5 months, 2021 in 17 months. Right now there are few models of EV's you can pay and drive away, so there are waiting lists. By 2021 there should be a nice range here, so maybe the timing is about right. Some in this thread, while stating the virtues of emissions, are happy to wait, for a subsidy, and so it seems a bit disjointed at the moment. I'm looking for a new car, a new EV is hard to justify, these subsidies don't change that. Maybe look at a new PHEV? Maybe an older EV? Although I want new not older. I will probably get an older Leaf for the sole purpose of an extra car just for golf

A settling in period right now might be a good thing

Except that it will also give subsidies for smaller ICE cars. So it is incredibly stupid paying subsidies to buy ICE cars. But some EV models not getting any subsidy.

And if you need a car with 7 seats, looks like nothing will get the subsidy. Yet another thing that will hurt Maori and Pacific Islanders the most.

The claimed emissions savings are unlikely to be achieved with what they have proposed anyway. As someone buying a little ICE car is not going to reduce their emissions much (and in some cases the new car may have higher carbon emissions than the old car) if their previous car was also a little ICE car.

This would be compelling https://www.stuff.co.nz/motoring/102727088/dont-diss-the-hybrid-says-toyota-as-it-launches-new-plugin-prius-prime?rm=a

At 48k and a price reduction coming, plus I assume a 6k subsidy, it might be a $40k commuter EV

https://www.drivingelectric.com/your-questions-answered/686/what-self-charging-hybrid

Self-charging hybrids usually employ one or more electric motors to aid the performance of a car’s petrol or diesel engine.

Once the battery has acquired enough charge, a self-charging hybrid can use this additional energy to help the car gain speed, reducing the burden on the internal-combustion engine.

This has the effect of saving fuel, therefore improving fuel economy on typical journeys through towns and cities.

Most self-charging hybrids are also capable of moving under electric power alone for short distances, which is useful in slow-moving traffic and during manoeuvres like parallel parking. As well as conserving fuel, self-charging hybrids will reduce CO2 emissions, making them better for the environment.

Self-charging hybrids are so-named because you can't charge the battery externally: all the energy is harvested from either the engine, the brakes, or merely the act of slowing down.
...
While self-charging hybrids are likely to be a better prospect for some drivers than plug-in hybrids, it’s important to remember that they bring no efficiency benefits at motorway speeds. On fast roads, you're entirely reliant on the internal combustion engine, and if you travel cross-country a lot, then a pure petrol or diesel will be more suitable.

Because of their small batteries, self-charging hybrids can’t travel very far on electric power alone; usually no more than a mile or so. So if you frequently drive short distances and you can charge a car at home or at work, a plug-in hybrid might be a more cost-effective option. Not only will you save money by travelling on electric power rather than petrol or diesel, you’ll still have the option of driving further afield using conventional fuel should the need arise.

Finally, self-charging hybrids are unlikely to suit driving enthusiasts. Most self-charging hybrids are designed to save fuel and make driving a relaxing and pleasant experience, as opposed to an exciting or involving one.

Me too. Its a pity that the premium well exceeds any costs savings

With Hybrids, apparently the battery degrades faster than an EV. But if your main mileage is commuting a hybrid can work out as they are cheap. Latest Prius might be 40k all up with subsidy. 65km range, top up at home, back to work tomorrow, etc

Self charging ev are just ICE to me.

Unless I can plug in and charge the battery it's not an EV.

If you mist burn fossil fuel you use it's an ICE.

The feebate scheme proposed is open to feedback from the public. So let's do it. It's also taking effect after the next election. If we have a Labour Green government with a comfortable majority,,, we might see some changes to the scheme. At this point, anyone who cares about climate change simply can't vote for National. It's like an IQ test for NZ

Remind me, which party introduced the RUC exemption for EVs?

National did it. Good on them. Put alongside everything else they did, it's not big enough. They also increased speed limits on some roads and *increased* emissions. They had a plan they bottom-drawered as it was always "too soon" to do anything significant. That was while Obama was in the White House. All the indications I've seen from National *voters* is that with Trump in the White House they are now free to return to calling climate change a hoax.

For me the hybrid option was a consideration that I ultimately discarded in favour of an FEV. I would have loved a Tesla but couldn't see myself paying that much, model 3 wasn't out at the time. Even then now it's still on the high side for me [base model is $74k NZ?].

Rightly or wrongly, when I looked into it further I considered the possibility that a hybrid would be more complex and therefore servicing and repair costs could be unpleasant. Also, with my current work commute I'd still be using petrol, I like it that I don't need to now for environmental as well as economic reasons.

Cars over $80k don't qualify for the rebate.

I haven't had time to fully go through the announcement yet, but that's a logical thing to do.

I'm also not sure how it would apply if I imported my own ZEV.

As I've commented multiple threads, a HYBRID is not an EV (look up the meaning of hybrid) If people don't know where their vehicle ultimately gets its motive energy from then they deserve all they (don't) get. Self Charging is a bs marketing construct that the PR department of Toyota/Lexus dreamed up that has been adopted by other Full Hybrid manufacturers.

I find it a little perplexing that the 'save the planet brigade' have a problem with a scheme that incentivises reduced emission vehicles (hybrids) as well as EVs. It can't all be done at once.

It wouldn't apply,

The proposal is to make the point of application at the NZ "point of purchase" , either by the dealer or the importer.....

With a private import there is no NZ based purchase, you are purchasing it from a seller overseas...

Tres unhelpful. Waiving GST would have been far more useful.

Removing GST was one of the policies specifically rejected, this is the list of ideas they rejected ( from the cabinet paper)

34.1. Varying annual vehicle licensing fees based on their CO2 emissions

34.2. Air pollutant emissions testing as part of Warrant of Fitness checks

34.3. Mandating a certain proportion of vehicle sale to be low emission

34.4. A fringe benefit tax exemption for electric vehicles

34.5. A GST exemption for electric vehicles

34.6. Increased depreciation rates for electric vehicles

34.7. An upfront subsidy of $1000-$2000 for electric vehicles12

34.8. A legislated end date for the import of fossil-fuelled vehicles.

So, in effect, they are entering this with one hand and four of their five digits on the other tied behind their back.

Once again it will be a talk big, achieve little, policy.

My hybrid will have it’s trade-in value depressed and our ICE’s trade-in value inflated by virtue of rebate/tax on their respective new models.

All it has achieved is me moving my EV purchase from later this year to at least two years in the future.

Just applying it at first registration would have been more useful. Then it applies no matter how the car arrives in the country.

Its supposed to be taxpayer neutral. Probably easier to keep GST out of it and simplify the discount and collections. What happens when collections fade? I assume they tell everyone that as taxable ICE's have dropped off the market, job done?

Yeah I think that's pretty much the plan. Once EVs have reached price parity with ICE cars, gradually remove the subsidy. (But keep the fee for ICE, IMHO, and use it to pay for more fast charging stations).

Alternatively could expand the range of taxable ICEs as by then there may be EVs to fulfil currently unmet requirements e.g. heavy trucks

I cant see price parity for a long while. They need to recover R+D, but if they are smart and they have production capacity, they can stretch out R+D recovery per unit to boost sales. Thats governed by what they can produce. As Paul below mentioned, if EV capability exists in NZ for any given car capability, its sensible to punitively tax it. I.e. if you want a 3 litre 5 door and there is an EV, tax the ICE to support the EV. We are a way off that yet