Increased Government Investment Fueling Robust Recovery in New Vehicle Sales, Particularly for Electric Vehicles in New Zealand
In an encouraging development for the automotive industry, June 2025 saw a significant increase in new-vehicle registrations compared to May, with a total of 11,862 new vehicles hitting the roads. This figure represents a 26% rise on June 2024.
The surge in sales was particularly noticeable in the light commercial vehicle segment, where June marked the best month so far in 2025 and the single best month since April 2024. A total of 3,204 light commercial vehicles were registered in June, with the Ford Ranger leading the pack with 948 registrations. The BYD Shark 6 followed closely behind in third place with 413 sales, while Toyota Hilux came in second with 853 registrations.
Battery electric vehicles (BEVs) also experienced exceptional growth in June, with 1073 registrations—their best sales figures since the end of the Clean Car Discount in December 2023. This surge in BEV sales is likely to be a positive sign for the industry's transition towards more sustainable transportation solutions.
In the passenger vehicle category, Toyota's RAV4 took the lead with 781 sales, placing it at the top of the June rankings. Tesla's Model Y came in fourth with 407 sales.
The Motor Industry Association (MIA) has attributed this bounceback in new-vehicle sales to the Government's "Investment Boost," a new tax incentive that allows businesses to deduct 20% of the cost of new assets in the year they are purchased or first used, in addition to normal depreciation. The June quarter ANZ Business Investment Survey showed central government policy as a key driver for firms planning to invest, and this likely refers to the Investment Boost announced in the May Budget.
Amy Wiley, CEO of the MIA, suggested that the link between the June increase and the Investment Boost cannot be discounted as a factor in the latest figures. She stated, "The Government's Investment Boost has provided a much-needed boost to the automotive industry, encouraging businesses to invest in new assets and helping to drive sales."
Further analysis of the June numbers shows the lift in new-vehicle sales has come from rental, business, and private buyers alike. A MYOB survey of more than 500 small and medium-sized businesses in May put passenger vehicles, including cars, vans, and utes, at the top of the list of new assets to purchase.
As we move forward, it will be interesting to see how the automotive industry continues to evolve in response to the Investment Boost and other government initiatives. With the focus on sustainability and innovation, it's an exciting time for both consumers and businesses alike.
