New Zealand’s new vehicle market stabilises in 2025 as hybrids gain share – Australasian Fleet Management Association – AfMA
New Zealand’s new vehicle market ended 2025 on a stable note, with overall sales slightly higher than the previous year, according to the Motor Industry Association (MIA). While December recorded a seasonal decline, the full-year results show a measured recovery, supported by improving economic conditions and steady consumer and business demand.
Industry data shows total new vehicle sales fell 9.6 per cent in December, to 9,304 units, down from 10,293 units in the same month of 2024. Light passenger vehicles, including SUVs, declined 10.7 per cent year-on-year to 6,420 units but retained a 69 per cent share of the monthly market. Light commercial vehicle sales fell 10.4 per cent to 2,403 units, accounting for 25.8 per cent of sales, while heavy commercial vehicles bucked the trend with a 13.9 per cent increase to 481 units, lifting their market share to 5.2 per cent.
MIA chief executive Aimee Wiley said the December decline reflects typical seasonal patterns rather than a drop in underlying demand.
“Activity lifted from mid-year and finished ahead of 2024, supported by easing financial conditions and improving confidence, but demand remains measured,” Wiley said.
On a year-to-date basis, total new vehicle sales rose 7.1 per cent to 137,900 units, up from 128,798 in 2024. Light passenger vehicles led growth, increasing 12.1 per cent to 97,985 units, while light commercial vehicles rose modestly by 1.3 per cent to 34,136 units. Heavy commercial vehicle sales fell 24.7 per cent for the year, totalling 5,779 units.
Ms Wiley noted that buyers are taking a deliberate approach to purchases.
“Buyers are prioritising value, practicality and suitability, whether that is in their choice of vehicle segment or motive power. The market is adjusting, with households and businesses being deliberate about the timing and scale of their purchasing decisions.”
Motive power trends varied across vehicle types. Among light passenger vehicles, non-plug-in hybrids and plug-in hybrids both increased market share compared with 2024, while battery electric vehicle share remained broadly stable.
In the light commercial segment, petrol and diesel vehicles remain dominant, though hybrid, plug-in hybrid, and battery electric vehicles all gained share from a low base. The uptake of hybrid vehicles reflects greater model availability, improved fuel efficiency, and suitability for everyday use, offering a middle ground for buyers seeking lower emissions without the higher costs or infrastructure demands of full electrification.
The MIA said 2025 represents a period of consolidation, with demand stabilising after previous fluctuations. Economic indicators such as easing interest rates and improving business investment supported the market, though labour market softness and uneven consumer spending continued to moderate growth.
“Overall, 2025 did not mark a return to previous market highs, but it signals a reset to more stable demand levels, with gradual recovery expected to continue into 2026,” Ms Wiley said.
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AFMA
The Australasian Fleet Management Association (AfMA) is a member based, not-for-profit peak industry body throughout Australia, New Zealand and South East Asia. AfMA’s membership base is represented across all industries including Federal, State and Local Government and is responsible for the management of many hundreds of thousands fleet vehicles.
AfMA may receive moneys from its corporate partners. Any funds received are utilised to reduce AfMA’s operating costs and therefore subsidise membership fees.
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