The EV revolution? EVs and PHEVs are disappearing.

Fancy an Ora Cat? Not many did, but what was a well-specified and good small electric car is no longer. Call it an own goal on the part of pricing from GWM, but the blame really rests on unfavorable EV legislation. With weak demand, electric vehicles are disappearing from price lists and websites.  

At the other end of the scale, sir, you enquired about a Land Rover Defender PHEV? You are plumb out of luck.  

How about a Fiat 500e, an Ioniq 6. Sorry madam, we are out of stock. Well perhaps a more mainstream car like a Volkswagen ID4 or ID5? Nothing. Cupra Born? Gone. Kia Niro electric? Not today. Peugeot e208, Subaru Solterra. All gone.  

Photo by Matteo Badini on Unsplash  

In 2025, New Zealand’s electric vehicle (EV) and plug-in hybrid (PHEV) market is experiencing a chilling retreat. After years of rapid acceleration, the removal of the Clean Car Discount, introduction of Road User Charges have combined to dampen consumer enthusiasm. The effects are measurable—and visible on dealership forecourts. 

A growing list of EVs has been formally withdrawn from the New Zealand market, including; Fiat 500e; Hyundai Ioniq 6, Kia Niro EV and PHEV, Jaguar I-Pace, Mazda MX-30, Peugeot e-208, Škoda Enyaq, Volkswagen ID.4 and ID.5 and Subaru Solterra.

The departures span brands from budget to premium, indicating widespread concern about declining margins and consumer appetite. According to Waka Kotahi data, YTD EV registrations (Jan–May 2025) are down approximately 35% compared to the same period in 2024. EV market share has plummeted to just ~6.9%, down from 17.1% in mid-2024 — returning the country to pre-2022 adoption levels. 

Just in case you think that this mirrors other markets, in China over 4.4 million EVs sold by May 2025 — up 33% YoY, and their BEV market share reached 31% in May alone. In Europe there were sales of 1.6 million EVs in H1 2025, rising 27% YoY and pure EVs represent 18.4% of new vehicle sales, up from 16.2% in 2024. 

Markets like Germany, France, and the Nordics are bolstered by persistent subsidies and charging infrastructure expansion. 

Even in Australia our coal mining cousins, YTD sales (to June) are up ~12%, with EVs making up 10.3% of new car sales in June 2025. 

In the USA Q1 EV sales rose 11.4% YoY, but total market share dipped slightly to 7.5% from 8.7% in Q4 2024. 

Simply put, locally the loss of incentives, has stalled the local market. The elimination of the Clean Car Discount and new RUCs have made EVs less economically compelling. This is understandable but disappointing. Cars have a life of 15-20 years, and every new car sold increases supply to the used market. Right now there aren’t enough used buyers keen to take advantage of used BEVs, simply because the cost case is much less clear cut than it once was. Factor in massive over-supply (remember the coalition pulled the rug out from consumers, dealers and distributors very quickly, meaning there was a long tail of vehicles ordered and on boats that still arrives post rebate removal), and the used market is very soft for electrics.  

Ordinarily this would be great news for used buyers, however consumer confidence is fragile. What’s more the new market has only cleared out the last of the old stock from 18 months ago. Polestar 2, was a bargain $49,990 for a while (there’s a reason they had such a strong Q1 and Q2; normal service will be restored for Q3) and so importers of newer BEVs will be breathing a sigh of relief. Its hard work selling a Smart #3 or Leapmotor C10 when a Polestar 2 or Mach-E was $30K below MRRP for a while.  

We are seeing new entrants. But Geely’s volume aspirations for 2025 will be modest. The charge towards electric is no more. It's more of a gentle shuffle.  

So what comes next?  An undoubted bright spot is the BYD Shark. The first PHEV ute has captured hearts and minds with its sizeable battery and first past the start line introduction. But Shark is a highlight in an otherwise bleak picture, although there are now three PHEV utes in the market. Opportunities do remain. As global battery prices decline and right-hand drive production scales up, New Zealand will benefit from a wave of new models, probably from new brands seeking a slice of the new vehicle market, and affordable second-hand EV imports will arrive in greater numbers from Japan, the UK, and Australia by 2026–27. Until then, the nation remains a bystander to a global EV surge that shows only slight signs of slowing. 

If New Zealand really does want to power its vehicles with the renewable energy it makes right here, rather than higher emissions oil and gas from overseas, then the major and minor parties better create a joined-up plan to make it happen.  

Note: Since writing this article and publishing it on this blog, Ora has reappeared and is currently New Zealand's cheapest BEV.