Regardless of ‘Ute Tax’ incentives, Southlanders aren’t turning to EVs

Tim Rabbitt, principal dealer of Ford Macaulay Motors, says that while the car industry

John Hawkins/Stuff

Ford Macaulay Motors principal supplier Tim Rabbitt says that whereas the automotive business is softening from an unrealistic excessive earlier than the introduction of the “ute tax”, demand for the brand new Ford Ranger within the Southland is the best he has skilled. .

Regardless of 400 much less petrol-efficient automobiles being registered within the state because the scheme’s inception, the “ute tax” shouldn’t be driving Southlanders away from double cabs.

The clear automotive low cost, also referred to as the “ute tax”, provides motorists shopping for electrical automobiles as much as $80,000 a rebate of as much as $8625 and is paid for by elevated charges on high-emission autos upon registration.

The low cost a part of the scheme has been in place since July final 12 months, with elevated charges on larger polluting autos from April 1 this 12 months.

In accordance with figures from the Waka Kotahi open knowledge portal, 429 petrol automobiles had been registered for the primary time in Southland between April 1 and July 1, which is 432 fewer than the identical interval in 2021 – when 861 petrol automobiles had been registered within the area. .

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Electrical automobile registrations had been up, however petrol registrations have not seen the identical drop, with 17 autos registered in Southland since April 1.

Throughout the nation, April marks the primary month a UT has not made it into New Zealand’s prime three month-to-month registrations for greater than a decade.

Macaulay Motors chief supplier Tim Rabbitt stated the developments confirmed the automotive business was softening from an unrealistic excessive earlier than the introduction of the “ute tax”.

He stated the January to March quarter of 2022 noticed file gross sales as folks tried to improve their autos earlier than the tax was launched, and the market was solely falling compared.

His crew was bracing for a drop in orders, however as a substitute skilled excessive demand for Utes, notably the brand new next-gen Ford Ranger.

“We have by no means seen demand like this … we have got 250 on order to be delivered by Christmas … usually we’re accomplished subsequent month, now we have got the following six months. .”

The brand new Ford Ranger is estimated to value between $1,840 and $5,175 in clear automotive charges.

Southern Cars principal supplier Lindsey Moffat stated inquiries for the autos had been nonetheless robust, however gross sales had been restricted by availability.

He stated manufacturing disruptions that plagued the business in 2021 continued into 2022, with some fashions requiring six to eight months’ discover on orders.

“There was a rush to get in earlier than the tax was carried out, and now it is sluggish after the storm,” he stated.

Motor Industry Association chief executive David Crawford says UT registrations in the Southland have not fallen to the same extent as other regions across the country. [file photo]

Motor Trade Affiliation/Provided

Motor Trade Affiliation chief govt David Crawford says UT registrations within the Southland haven’t fallen to the identical extent as different areas throughout the nation. [file photo]

David Crawford, chief govt of the Motor Trade Affiliation, stated the clear automotive low cost has boosted passenger automobile gross sales throughout the nation in comparison with SUVs as most electrification is with passenger autos.

In Southland, ute gross sales had been down from January to June 2022 in comparison with the identical interval in 2021, however not as a lot as different areas.

“This displays the largely rural nature of the Southland and the necessity for UTs to hold out business actions.”

The warfare in Ukraine and China’s zero-tolerance Covid-19 coverage are additionally affecting gross sales, he stated.

Ukraine had a number of vegetation manufacturing automobile elements that catered to a variety of auto manufacturers, whereas Russia was a significant provider of auto microprocessors.

“Automakers are sourcing components and microprocessors elsewhere, however it takes time to re-establish manufacturing capability,” he stated.

He anticipated the market to proceed to melt because the above elements mixed with excessive rates of interest and issue in acquiring financing for the acquisition of autos.

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