Hybrid and electric vehicles

Prices for new EVs excluding on-road costs start from around $46,000. For a list of EVs available in NZ and indicative prices, check out Drive Electric. There is also an increasing number of used EVs available. New hybrids tend to be less expensive than new EVs.

Charging an electric vehicle is a lot cheaper than fuelling a conventional one. Gen Less estimates that charging an EV at home, off-peak, is the equivalent of paying 40 cents a litre for petrol.

From 1 April 2024, owners of light EVs and plug-in hybrid vehicles under 3.5 tonnes will need to buy a road user charges (RUC) licence. The RUC rate charged will depend on the type of EV you have:

• BEVs and diesel PHEVs: $76 per 1,000km
• Petrol PHEVs: $38 per 1,000km

Admin charges may also apply. For more information, visit the Waka Kotahi (New Zealand Transport Agency) website.

Home charging units can cost around $1,000 - $3,000, plus installation costs of around $2,000 – depending on the unit and the wiring in your home (Source: Genesis Energy). 

There are two kinds of emissions to consider:

• Emissions from driving the vehicle (‘tailpipe’ emissions)
• Lifetime emissions (this takes into account total emissions from manufacturing the vehicle, including the battery, charging/refuelling and driving the vehicle, over its lifetime.

Pure electric vehicles (BEVs) produce no tailpipe emissions. However, emissions are produced from creating electricity to charge the vehicle, so driving a BEV isn’t emission-free. The good news is that in New Zealand, 80-90% of the electricity in our national grid is from renewable sources, so driving a BEV creates much fewer emissions than driving a conventional car.

It’s a little more complicated with PHEVs and Hybrid vehicles (HVs). 

When you’re driving a PHEV in electric mode, there are also no tailpipe emissions so it’s just like a BEV. When the petrol engine kicks in, however, you’re using fossil fuels. If you charge the battery regularly and make the most of the electric mode to reduce fuel consumption, PHEVs can be effective in reducing emissions from driving. The more you use the petrol engine however, the more emissions you create.

Hybrid vehicles don’t have an electric-only mode, but they’re more fuel-efficient than conventional cars – so while there will always be tailpipe emissions, they emit fewer greenhouse gases per kilometre. 

It’s important to remember that fuel efficiency also depends on a range of things including how you drive, when you drive, and (for PHEVs) how often you charge the battery.

While it’s true that manufacturing electric vehicles creates more emissions than manufacturing conventional vehicles because of the extra energy required to manufacture the batteries, this evens itself out over the life of the vehicle. In fact, according to the Climate Change Commission, an EV used in Aotearoa emits about 60% fewer emissions over its full life cycle than an equivalent petrol vehicle. 

As BEVs have fewer moving parts than a conventional engine, they’re simpler to service – for example there’s no oil changes, fuel filters, drive or timing belts, or spark plug replacements to worry about.

While EV batteries are designed to last for many years, their capacity does reduce over time. When the capacity is no longer useful, the battery can sometimes be refurbished by replacing dead cells, or it may need to be replaced. Replacement batteries can be expensive (currently several thousand dollars) but research by EECA shows that factors such as lower running and servicing costs mean some BEVs can still compete with petrol cars in terms of total cost of ownership - even factoring in the cost of replacing the battery. Continual developments in battery technology mean it’s hard to predict exactly how total cost of ownership may compare in the future (Source: Gen Less).   

PHEVs have both an electric motor and conventional engine, so will have similar servicing needs as a petrol or diesel-powered vehicle.

If you’re able to charge an EV safely and easily at home or work, EVs can offer many advantages – they have less fuel costs and are better for the environment than petrol or diesel vehicles. 

Whether a BEV or a PHEV is best for you could depend on your situation. For example:

• If you use your vehicle mostly for trips within battery range, or you want an economical option for commuting or getting around town, a BEV can be a good option.
• If you often drive longer distances (or a mixture of longer and shorter distances), or you want the flexibility of having the longer range that comes with a petrol engine, a PHEV might suit you.   

There’s a lot to think about so it’s essential to do your homework. Before you take the leap, check out the Gen Less EV Buying Guide for more information and help.