Electric vehicles (EVs) are currently being sold at lower prices, which is primarily driven by a slowdown in global sales. As sales of new EVs have declined dramatically, manufacturers have responded by slashing prices to stimulate demand.
In a conversation with RNZ Afternoons, motoring editor Matthew Hansen said that the discontinuation of the Labour government’s rebate scheme contributed to the decline in electric vehicle sales.
During the period when the rebate scheme was in place, there was significantly more momentum in the electric vehicle (EV) market, as consumers felt encouraged by the previous government’s incentives to invest in new EVs. However, the market has undergone a dramatic shift since the beginning of the year.
“People’s attitudes have changed, and the ironic thing is… most of these vehicles are cheaper now than they were a year ago, even without the discount,” Hansen said.
Despite a slowdown in overall sales growth, the reduction in prices has created a favourable buying environment. For Hansen, the current electric vehicle market presents an opportunity for consumers to purchase an EV, forecasting that the “current prices wouldn’t last.”
“If you’re a customer and you’ve got 40 grand in your pocket, the options out there now are much greater than they were 12 months ago.”
“I think a lot of these brands are really struggling to make a profit, to make money out of these cars, and they’re just trying to get them out of their hair.”
While some governments worldwide have discussed banning the manufacture of petrol and diesel vehicles by certain dates, Hansen believes that this perspective is losing momentum.
Many administrations have adopted a critical view of EVs. Dealers and voters have shown resistance to the idea of eliminating petrol vehicles. Additionally, some manufacturers have changed their strategies and decided not to proceed with phasing out petrol and diesel vehicles.
Hansen advocates for a thoughtful approach to vehicle ownership that considers both personal lifestyle and financial implications.
“There are certainly people out there who have EVs, who love them; those cars fit their lifestyle perfectly….Evaluate yourself, evaluate what you do every week, and think to yourself, do I really like spending $120 on this dinojuice I chuck in my car and never see back again?”