Electric vehicles

Electric vehicles are vehicles charged from an external electricity source.

They can be powered in two ways:

1. solely by electric batteries. These are commonly known as pure electric vehicles; or
2. a combination of electric batteries and a petrol or diesel engine. These are commonly known as plug-in hybrid electric vehicles.

Electric Vehicles Programme

On 5 May 2016 the Government announced its Electric Vehicles Programme, which aims to increase the uptake of electric vehicles in New Zealand.

The package also aims to develop the electric vehicle market in New Zealand, and the supporting infrastructure for that market.

The Electric Vehicles Programme includes:

• A target of doubling the number of electric vehicles in New Zealand every year to reach approximately 64,000 by 2021
• Extending the Road User Charges exemption on light electric vehicles until they make up two percent of the light vehicle fleet
• A new Road User Charges exemption for heavy electric vehicles until they make up two percent of the heavy vehicle fleet
• Work across Government and the private sector to investigate the bulk purchase of electric vehicles
• Government agencies coordinating activities to support the development and roll-out of public charging infrastructure including providing information and guidance
• $1 million annually for a nation-wide electric vehicle information and promotion campaign over five years
• A contestable fund of up to $6 million per year to encourage and support innovative low emission vehicle projects
• Allowing electric vehicles in bus lanes and high-occupancy vehicle lanes on the State Highway network and local roads
• Review of tax depreciation rates and the method for calculating fringe benefit tax for electric vehicles to ensure electric vehicles are not being unfairly disadvantaged
• Establishing an electric vehicles leadership group across business, local and central government

The package aims to address barriers to the uptake of electric vehicles, including the limited supply of models in New Zealand, lack of awareness and misconceptions about electric vehicles, and a lack of widespread public charging infrastructure.

• Download a fact sheet on the content of the Electric Vehicles Programme
• Download a fact sheet on why electric vehicles are particularly well suited to New Zealand
• Read the Minister of Transport’s media release
• Read the Minister of Transport’s media release about the Contestable Fund

Reducing transport emissions requires a range of measures, of which increasing the use of low emissions vehicles is just one. See here for details on other Government measures to reduce greenhouse gas emissions from the transport sector.

New Zealand is well suited to an electric vehicle fleet

New Zealand is well positioned to benefit from electric vehicles because:

• Currently around 80 percent of our electricity is generated from renewable sources. Even if all vehicles on the road were electric, there are sufficient consented renewable generation projects to cover this demand.
• New Zealand’s has a target for 90 percent renewable electricity generation by 2025. Because of our high level of renewable energy, the emission reduction benefits of electric vehicles in New Zealand are greater than in other countries.
• New Zealand’s 230-volt system enables easy charging from existing electricity outlets.
• Around 85 percent of New Zealand homes have off-street parking, meaning electric vehicles can be charged easily overnight at home.
• New Zealanders have a low average commute, with drivers in urban centres clocking up about 22 kilometres a day — a distance the batteries in today’s electric vehicles can handle easily. 95 percent of daily travel demand is for distances less than 120 kilometres, which is within range of electric vehicles (approximately 150 kilometres per charge).

Download a fact sheet about electric vehicles in New Zealand

For further information, read the questions and answers about electric vehicles on the Energy Efficiency and Conservation Authority (EECA) website .

Electric vehicles and reducing transport emissions

Increasing the use of electric vehicles in New Zealand will help to reduce greenhouse gas emissions over the long term.

A Life Cycle Analysis report commissioned by the Energy Efficiency and Conservation Authority (EECA) found electric vehicles (EVs) are better for the New Zealand environment than petrol or diesel powered vehicles, across the lifecycle of the vehicle as well as in use.

The report looks at the impacts of a vehicle across its entire life — from resource extraction to production, use on the road and finally disposal at the end of the vehicle’s life.

Pure EVs have around 60 percent fewer carbon dioxide emissions than petrol vehicles, and around 80 percent fewer carbon dioxide emissions when driven in New Zealand, as a result of our abundance of renewable electricity.

The report can be downloaded from EECA’s website:

• Life Cycle Assessment of Electric Vehicles (Report Infographic)
• Life Cycle Assessment of Electric Vehicles (Executive Summary)
• Life Cycle Assessment of Electric Vehicles (Final Report)

Development of the Electric Vehicles Programme

The following Cabinet papers and Regulatory Impact Statement set out the proposals included in the Electric Vehicles Programme:

• Electric Vehicles: Package of Measures to Encourage Uptake
• Promoting the Uptake of Electric and Other Low Emission Vehicles
• Regulatory Impact Statement: Road user charges exemptions and discounts for electric vehicles
• Research into the long-term trends for electric vehicle price and supply – understanding developments in the global market