**NZ Faces EV Shortage After Subsidy Removal**

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Post on Nov 08, 2024

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NZ's Electric Dream Turns Sour: EV Shortage After Subsidy Removal

New Zealand's electric vehicle (EV) market is facing a major headwind after the government pulled the plug on its popular clean car discount scheme. This move, designed to reduce spending, has left many potential EV buyers feeling left out in the cold, with a shortage of new EVs now hitting the market.

The Big Picture:

The Clean Car Discount scheme, introduced in 2021, offered generous rebates on the purchase of new EVs. This sweet deal attracted plenty of Kiwis, who were eager to embrace a greener future on the road. But the scheme, initially intended to be a temporary measure, was abruptly ended in July 2023.

The EV Drought:

With the subsidies gone, the demand for new EVs hasn't slowed down. The problem? Supply chains are still struggling to keep up, and the lack of incentive has made many manufacturers prioritize other markets. This has resulted in a significant shortage of new EVs in New Zealand, with wait times for popular models stretching for months.

The Fallout:

The EV shortage is causing a ripple effect across the automotive industry.

• Used Car Prices: The demand for used EVs is skyrocketing, pushing prices up. This leaves many Kiwis who can't afford a brand new EV priced out of the market.
• Dealer Frustration: Dealerships are struggling to meet the demand, leading to disappointed customers and lost revenue.
• Environmental Impact: The delay in EV adoption means that New Zealand's goal of reducing carbon emissions will be much harder to achieve.

What's Next?

The government's decision has left many feeling uncertain about the future of EVs in New Zealand. Some believe the government should reintroduce a subsidy, even if it's on a smaller scale. Others argue that market forces will eventually lead to a more affordable EV market, but this might take some time.

The Bottom Line:

While the government's decision was motivated by fiscal concerns, the unintended consequences are clear. New Zealand's EV dream is facing a major detour. Whether the government will step in to address the shortage remains to be seen, but one thing is clear: the future of electric driving in New Zealand is hanging in the balance.