New Vehicle Registrations Decline In January As Market Faces Continued Challenges

New Zealand’s new vehicle registrations in January 2025 totaled 10,863 units, reflecting a 14.1% decline compared to January 2024 and a 13.0% drop from January 2023. The downturn highlights continued market adjustments driven by broader economic pressures and shifting buyer behaviours.

Despite subdued figures, segments such as hybrid vehicles and select SUV models continue to show resilience, reflecting evolving consumer preferences towards fuel efficiency and sustainability.

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

“The January 2025 vehicle registration figures highlight the ongoing adjustments within New Zealand’s automotive sector. The decline, particularly in light commercial vehicles, was expected following the exceptional spike in January 2024, which was driven by the removal of Clean Car Discount penalty fees. A comparison with January 2023, a more stable market period, suggests a broader downward trend across all vehicle segments.”

Wiley emphasised that while consumer demand is gradually shifting towards SUVs and hybrid vehicles, the pace of this transition remains slower than what is required to meet the recently strengthened CO targets. The industry faces a complex challenge - balancing regulatory compliance with evolving consumer preferences while ensuring that vehicles remain accessible and competitively priced.

“Managing this transition effectively is critical to preventing unintended market consequences, such as rising vehicle costs or supply constraints. While hybrid adoption remains strong, electric vehicle uptake has yet to see a significant rebound. Ensuring long-term affordability and sustainability in the market will require ongoing collaboration across the sector, with a focus on aligning supply with both regulatory requirements and real-world consumer demand," Wiley added.

Key Industry Insights

Industry Registrations

In January 2025, 10,863 new vehicles were registered, marking a 14.1% decrease (1,786 units) compared to January 2024 and a 13.0% decrease (1,618 units) compared to January 2023.

Light Passenger Insights (including SUVs)

Light Passenger Registrations

In January 2025, new light passenger vehicle registrations, including SUVs, totaled 8,062 units, representing a 0.7% decrease from January 2024 and a 13.1% decline from January 2023. This segment continues to hold the largest market share. Notably, the uptake of hybrid vehicles in January was slightly below the 2024 full-year average, accounting for 33.4% of the market, a slight dip from the 2024 average of 35.9%. Similarly, electric vehicle registrations accounting for 7.0% of registrations compared to 7.3% previously.

Light Commercial Vehicle Insights

Registrations

In January 2025, 2,338 light commercial vehicles (LCV) were registered, a decrease of 38.3% (1,451 units) compared to January 2024 and a 13.9% decrease (378 units) compared to January 2023.

In January 2024, LCV registrations experienced a significant spike, primarily due to the removal of Clean Car Discount penalty fees from 1 January 2024. This policy change led to a temporary surge in demand. Therefore, January 2023 serves as a more reliable benchmark for assessing typical market performance in the LCV sector.

Heavy Commercial Vehicle Insights 

Registrations

Heavy vehicle registrations totaled 463 units, reflecting a 37.1% decline from January 2024 and a 5.7% drop from January 2023. This sector remains sensitive to infrastructure investment trends and broader business confidence levels.

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