Electric vehicles (EVs) are becoming increasingly popular in New Zealand, and it’s easy to see why: they offer cleaner energy, lower fuel costs, and less maintenance. But for businesses with a fleet of vehicles, switching from traditional fuel-powered cars to EVs isn’t as simple as it sounds. There are upfront costs, infrastructure requirements, and some learning curves for employees along the way.
So, is 2025 the right time for New Zealand businesses to make the move to EVs? In this article, we’ll look at the pros and cons of EV fleets including costs, current NZ infrastructure to support EVs, environmental impact, employee experiences, and more to help you make an informed choice.
Key points covered
- New Zealand’s current EV landscape
- Comparing EV to petrol car costs
- EV infrastructure in NZ
- Environmental impact & corporate responsibility
- Is a hybrid fleet the solution?
The Current EV Landscape in New Zealand
EV sales in New Zealand have experienced steady growth over recent years. As of September 2024, there are over 111,700 plug-in EVs on the roads, including about 78,000 fully electric vehicles, and 33,700 plug-in hybrids (source). This is a big jump from the end of 2023, when there were just over 100,000 plug-in EVs in total.
Market Share and Sales
In 2024, however, the rate of new EV registrations has slowed. By September, 15% of new car registrations were EVs, with a year-to-date rate of 10.1%, down from 27.2% in 2023. The main reasons for this dip can be linked to policy changes. The NZ government ended EV rebates and added road taxes for EVs, making them slightly more expensive upfront.
Public Charging Infrastructure
New Zealand’s network of public EV chargers is growing, though it still has some catching up to do. As of April 2024, there were over 1,200 public chargers across the country, or about one charger for every 59 EVs (source).
Many of these are fast chargers (25kW and above), with more than a quarter classified as rapid (75-150kW) or ultra-rapid (175-475kW), which provide a quicker charge. ChargeNet, a major provider, operates over 450 of these fast charging points nationwide.
The New Zealand Government aims to increase this infrastructure significantly, with a goal of reaching 10,000 public charging points by 2030 (source).
Where Are EVs and Chargers Located?
EV adoption is higher in cities, with Wellington leading at 3.38% of its light vehicle fleet as EVs, followed by Auckland at about 2%. Charging stations are also concentrated in urban areas: there are around 825 chargers in the North Island and 420 in the South Island.
EVs vs. Traditional Car Costs
While Switching to EVs comes with some upfront costs, the long-term savings can make a significant difference to your business’s bottom line over time. Here’s a look at the main cost factors:
- Initial investment. EVs broadly cost more to buy than traditional cars, especially if a business is transitioning an entire fleet.
- Operational expenses. EVs are cheaper to run day-to-day. Electricity costs significantly less than fuel – with the cost per 100km for recharging an EV around NZD $5.20 vs NZD $22 for petrol-powered cars. EVs also generally need less maintenance.
While the upfront investment to transition your business fleet to EVs can be substantial, the long-term cost savings can make a powerful impact.
EV Infrastructure Considerations
Switching your fleet to EVs also means thinking carefully about charging options. New Zealand’s EV charging network is growing, but it’s still limited in some areas, especially in rural regions. For businesses based outside main cities, relying on public chargers might not be practical.
For businesses with multiple EVs, having chargers on-site can make things much easier. Setting up charging stations at your premises comes with some upfront costs, but it means vehicles can “fuel up” during work hours or overnight.
If employees take EVs home, you may want to also consider at-home charging options. This helps ensure vehicles are fully charged for work use, adding convenience for both employees and the business.
Employee Perceptions and Satisfaction
Employees tend to see EVs in a positive light, especially if they care about sustainability and saving on fuel costs. Adding EVs to your fleet can make your company look forward-thinking and environmentally friendly, which can boost morale and even attract new talent.
But switching to EVs does come with a few adjustments. Employees may need to plan around charging times and get comfortable with the car’s driving range, which might take a little getting used to.
If your business involves a lot of long drives, the range of EVs could be a concern. Having open conversations with employees about these practical details — like planning charging stops for longer trips — can help everyone understand what to expect and feel more comfortable with the transition.
Environmental Impact and Corporate Responsibility
Switching to EVs isn’t just about saving money; it’s a way to make a real difference in reducing emissions. EVs produce no tailpipe emissions, which means your business can lower its carbon footprint and do its part for the environment. For companies that care about being socially responsible, adding EVs sends a strong message about your commitment to greener practices.
Today’s customers notice when a company is making an effort to be sustainable, and choosing EVs can boost your reputation as a responsible, forward-thinking business. Going green not only helps the planet but also gives your brand a positive edge, showing that you’re committed to a cleaner future.
Challenges and Future Outlook
New Zealand still faces challenges in expanding its charging network. Currently, it has one of the lowest ratios of public chargers per EV among OECD countries. The government is working to increase the number of public chargers to support the growing number of EVs.
There are also concerns about whether the electricity grid can handle a big jump in EV usage, but smart charging solutions are being developed to help manage this demand.
In short, while EV adoption in New Zealand is on the rise, recent policy changes have slowed the growth somewhat. The government’s plans to expand charging infrastructure and support the grid will be essential to keeping EV adoption moving forward.
Is a Hybrid Approach the Best Solution in 2025?
For many businesses, going fully electric might not be practical just yet. A hybrid approach – combining EVs with traditional fuel-powered vehicles could be the most realistic solution.
This allows companies to gradually introduce EVs where they make the most sense, such as for local routes or lighter-duty roles while keeping fuel cards for longer trips or heavier-duty vehicles.
This phased approach offers flexibility and balance, letting businesses ease into the EV world without fully committing. Companies can experience the benefits of EVs, like lower fuel and maintenance costs, while still managing fuel expenses for the rest of the fleet.
Over time, as EV technology and charging networks continue to improve, businesses can slowly expand their EV use, making the transition smoother and more sustainable in the long run.
Want to Prepare Your Fleet for the Future?
As you prepare for a possible transition to EVs, a fuel card can help you manage fuel costs more effectively and streamline expenses across your fleet.
Fuel cards that support both traditional and electric vehicles are a flexible option, letting you save on fuel now while keeping your options open for the future.
See if your business is eligible for a fuel card and find out today, and find a fuel card program that fits your needs and aligns with your goals for tomorrow – whether you’re planning a gradual EV shift or simply looking to reduce fuel costs.
Nov 05, 2024
Compare Fuel Cards NZ Team
Last updated Nov 05, 2024