Vehicle Registrations Up 5.6% In December, But Year-To-Date Sales Reflect Market Challenges

New Zealand's new vehicle registrations for December 2024 increased by 5.6% compared to December 2023, reflecting a partial recovery from recent market volatility. However, year-to-date figures show a 13.5% decline from 2023, highlighting the ongoing impact of regulatory changes, economic pressures, and shifting consumer preferences.

One year after the Clean Car Discount was removed, coupled with broader market adjustments, these factors continue to shape sales trends across all light vehicle categories.

The Motor Industry Association (MIA) acknowledges the complexities facing the automotive sector as it adapts to evolving regulations and market dynamics. While the rise in December registrations offers a glimmer of recovery, the year-to-date decline highlights the pressing need for policy stability to support sustained market growth and resilience.

Aimee Wiley, Chief Executive of the Motor Industry Association, commented:

"Looking ahead, the industry's primary challenge will be navigating the stricter Clean Car Standard targets introduced for importers from 1 January 2025, while simultaneously supporting the transition to lower-emission vehicles. Achieving this balance is essential to avoid significant vehicle price inflation in 2025 and beyond."

Wiley emphasised that consumer preferences remain clear, with SUVs and light commercial vehicles continuing to dominate New Zealand’s market. She also highlighted encouraging trends in hybrid vehicle demand across all segments in 2024, reflecting a gradual shift towards lower-emission vehicles. However, she cautioned that the stricter CO2 targets present significant challenges for importers.

"Consumer demand simply does not align with the stringent CO2 targets for light passenger vehicles in 2025. Importers face a delicate balancing act to meet these targets and avoid penalties, which could lead to consumer vehicle price inflation unless genuine demand for EVs rebounds significantly in 2025. The industry must work collaboratively to address these challenges while ensuring vehicles remain affordable and accessible for New Zealanders," Wiley added.

Key Industry Insights

Industry Registrations

In December 2024, 10,315 new vehicles were registered, marking a 5.6% increase (547 units) compared to December 2023. However, the removal of the Clean Car Discount at the end of December 2023 has introduced distortions in year-on-year comparisons. Comparing December 2024 to December 2022, a more representative benchmark reveals a 12.8% decline (1,520 units).

Year-to-date, 2024 registrations were 13.5% lower than 2023, equating to a reduction of 20,212 units. Compared to 2022, the decline was even steeper at 21.8%, or 35,936 units.

Industry Breakdown

Retail Share by Marque and Model

Light Passenger Insights (including SUVs)

Light Passenger Registrations

In December 2024, 7,210 registrations reflect a 15.8% decline (1,354 units) compared to December 2023 and a 15.2% decline (1,290 units) against December 2022. Year-to-date, registrations fell by 20.9% (23,088 units) compared to 2023 and were also down 24.8% (28,861 units) relative to the same period in 2022.

Light Passenger Motive Power Insights: Top 5 selling models

Light Commercial Vehicle Insights

Registrations

In December 2024, 2,682 vehicles were registered, an increase of 329.8% (2,058 units) compared to December 2023. This dramatic rise is attributed to a prior purchase hold-off during the Clean Car Discount fee changes. However, a more balanced comparison against December 2022 reveals a 4.6% decline (130 units).

Year-to-date, registrations rose by 10.1% (3,095 units) compared to 2023. The 2023 figures, however, were significantly impacted by the Clean Car Discount fees, which discouraged purchases and led to an artificially low baseline for year-on-year comparisons. Against 2022, a more representative year, 2024 registrations were down 18.2% (7,527 units), highlighting broader market adjustments and evolving purchasing patterns.

Top 10 Light Commercial - Marque and Model

Heavy Commercial Vehicle Insights

Registrations

In December 2024, 423 heavy vehicles were registered, a sharp deviation from the preceding months and prior December averages. This figure represents a 27.1% decline (157 units) compared to December 2023 and a 19.1% drop (100 units) against December 2022. Such a significant reduction suggests an anomalous factor affecting December’s results, potentially driven by delayed orders or seasonal adjustments.

Year-to-date, heavy vehicle registrations declined by 2.9% (228 units) compared to 2023, aligning with moderate market adjustments. However, 2024 registrations remained 6.3% higher (452 units) than in 2022, underscoring a positive longer-term trajectory.

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