This story was prepared by Simon Lucas Mitsubishi and is being published by the New Zealand Herald as advertorial.

Electric and plug-in hybrid sales have plummeted in 2024.

What a turnaround!

2023 saw what many believed was the coming of age of electric vehicles.

With the planet burning and the political pressure ramped up to “do something!”, Government subsidies worldwide, including New Zealand, lit the fuse on what appeared to be a genuine desire to migrate to cleaner, more environmentally friendly choices for their next vehicle.

The growth in electric vehicle and plug-in hybrid sales in 2023 was spectacular and culminated in these vehicles making up 27.2% of all passenger sales.

Many believed that there had been a fundamental shift in the market, and that the shift was baked in. Manufacturers, under coercion from central governments, poured hundreds of millions into electric vehicle development, dealers structured business models around what they believed to be sustainable volumes – the future looked bright for electric vehicles and the consumers were on board.

However, 2024 saw electric and plug-in hybrid sales plummet to 9% of the market in New Zealand. A significant drop.

So, what happened? There are several reasons:

• Affordability – the removal of the clean car discount in January this year showed how a fickle public love a deal more than saving the planet. Faced with plummeting sales and rising inventories, distributors EV prices are now in many cases, lower than the net price in 2023 including the subsidy.
• Resale value – battery longevity and ease of ownership and the impact on resale became live points for discussion. Residual values on EVs have plummeted.
• Hassle – “Charge Station Availability Anxiety” was added to “Range Anxiety” as a consideration in a purchase decision. I might have the range to get to where I want to go, but can I easily get back? The stories of queues for chargers, conflict over charging etiquette, and broken chargers were being reported by EV owners that started to build a picture of a fragile charging infrastructure.
• Concerns about battery safety - Much like our irrational fear of sharks in the summer, battery fires, by their spectacular nature and difficulty to extinguish, are great for the social media feed and headline news – especially if an entire ship goes down with 3000 vehicles on board because of one (Felicity Ace 2022).
• Road user charges

Where to for electric vehicles now? Was the dream of wholesale adoption of electric vehicles a mirage?

No, but it will take more time than the legislators want it to take. There is a cautionary tale where incentives and disincentives are used to force a market into rapid change. Manufacturers understand their role in moving to cleaner energy sources but it relies on technological advances and economies-of-scale to lower the cost to achieve a wholesale transition.

What is the best solution for now?

Tarred with the same negativity directed towards fully battery electric vehicles is, without doubt, the best solution for the time – Mitsubishi Plug-In Hybrids. These two market leaders provide clean electric power for the vast majority of everyday motoring, can be charged at home on a normal three pin socket, can be fast charged if necessary and there is no need to worry about queuing at a charger station on a trip away for the weekend, or your roadie around the South Island because your charger is under the bonnet.

To explore other reliable options that offer all the advantages of an electric vehicle while solving the disadvantages, check out the petrol-powered Mitsubishi models at Simon Lucas Mitsubishi. These vehicles continue to be popular choices for those seeking versatile, dependable driving experiences without the complexities of electric or hybrid technology.

Written by Simon Lucas, Dealer Principal at Simon Lucas Mitsubishi.