Clean Vehicle Standard to stay: what it means for car buyers

The Government has confirmed the Clean Vehicle Standard will remain in place, ending speculation the scheme could be scrapped, with new settings to apply from 1 January 2028.

The standard sets carbon dioxide targets for the vehicles importers bring into New Zealand. Importers whose vehicles beat their target earn credits, while those that miss it face charges, costs that can flow through to the prices buyers pay at the dealership.

“The Clean Vehicle Standard sets emissions targets for vehicles imported into New Zealand,” transport minister Chris Bishop says.

“In 2025, it became clear that the Standard’s settings were not well matched to market conditions. Most importers were struggling to meet the passenger vehicle targets, with the charges likely to be passed through to consumers through higher car prices and reduced choice.”

The Government responded by cutting charges by nearly 80% late last year, and committed to a full review of the scheme. Bishop says the first stage of that review has now been completed.

“It found the Standard to be the most cost-effective way to increase the availability of lower-emissions vehicles in New Zealand. Most vehicle industry stakeholders who took part in the review also supported retaining the Standard.”

“The Government has therefore decided to retain a Standard and progress work to calibrate the settings so they are realistic and achievable for industry.”

For buyers, the practical upshot is continuity. The standard is one of the main policies shaping which vehicles importers choose to bring in, so retaining it means the flow of hybrids, plug-in hybrids and EVs into the market should continue to build.

There is also a change coming for used imports, which make up a large share of the cars New Zealanders buy.

“The Government has also agreed to set different targets for used vehicle imports to reflect that they have different and older technology,” Bishop says.

Until now, used imports have worked toward the same target trajectory as new vehicles, at half the charge rates. Separate targets recognise that a used import landing from Japan cannot match the emissions technology of a new car, and should ease cost pressure at the more affordable end of the market.

The reduced charge rates apply until the end of 2027, and the Government has not said where charges will sit once the new settings begin in 2028.

“Officials will now engage with the vehicle industry on settings and report back early next year. This work will inform new targets and settings that are due to take effect from 1 January 2028,” Bishop says.

Speaking on the ruling, Warren Willmot, General Manager, BYD Auto New Zealand said:

“Retaining the Clean Vehicle Standard sends an important signal to global vehicle manufacturers that New Zealand remains committed to the transition towards cleaner transport.

For OEMs making decisions about where to introduce new technologies, policy certainty matters.

“This decision helps ensure New Zealand remains a priority market, giving local consumers access to the latest electrified and low-emission vehicles sooner rather than later.

“Ultimately, that’s good for competition, customer choice and the country’s emissions reduction goals.”