Modest improvement for new car sales in 2025 – Motoringnz
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OUTCOMES from new vehicle sales in 2025 appear to have only mildly heartened the organisation acting for most distributors and it has offered no prediction about what 2026 will bring.
In the past year 132,121 passenger cars and light commercials were sold, a seven percent, 8998 unit lift on 2024, which was a dull year.
Analysis of this has been shared by the Motor Industry Association.
The Wellington-based organisation says last year did not signal a return to market highs experienced for the first three years of the decade, but did mark a reset to more stable levels of demand.
“Activity finished clearly higher than in 2024, supported by easing financial conditions and improving confidence,” it said in a statement attributed to chief executive Aimee Wiley (above).
“Overall, the data points to a market recovering gradually, with households and businesses remaining selective about the timing and scale of their investment decisions.”
What is also shown, however, is that trend toward adoption of new technology that reduces emissions has again been tempered, except for hybrids – which make the least difference over fully petrol and diesel vehicles.
The vast majority of new vehicles sold in 2025, especially cars, were still pump-reliant.
Even though the ute sector – which the Ford Ranger yet again dominated, though less convincingly than in 2024 (9681 last year versus 11,747) – has also started to include battery-involved petrol choices, most were sold with diesel engines that produce high emissions counts.
The take up of fully and plug-in hybrid electric vehicles remains massively subdued for a second consecutive year; an indicator perhaps of how important rebates withdrawn in 2023 were and also reflective of how Road User Charges have diminished their appeal, particularly for PHEV.
Annualised data shows that hybrid car volume climbed, with 41,414 registered for a 30 percent share of overall volume against 34,728 for 27 percent.
The top hybrid performer was also the best selling car in 2024, the Toyota RAV4, with 11,298 sold, against 10,530 in 2024. Ranger was the next strongest supported new vehicle.
In respect to this, Wiley believes: “The growth in hybrid vehicles reflects their increasing availability at lower purchase prices, improved fuel efficiency and suitability across a wide range of everyday uses.
“As a result, hybrids are emerging as a practical sweet spot for many buyers, delivering emissions reductions without the higher upfront cost, charging or infrastructure considerations associated with full electrification.”
Nonetheless, there is acceptance the battery electric passenger car count is far more vital for achieving CO2 average reductions demanded of sellers, and that has again lagged.
The total new count of these in 2025 came to a paltry 6878 units, for less than six percent share.
The EV penetration was marginally better than in 2024, but well down on 2023’s 6360, and also nowhere near the expected rate had rebates stayed in place.
The Tesla Modal achieved as the best selling electric in the period on strength of taking 1286 registrations – a count it would have accrued in just a couple of months when EVs were running hot. The sister Model 3 sedan slipped to 310 units, from 461 in 2024.
PHEV count in 2025 came to just 6885 units, of which 4662 were passenger, for a five percent share, again better than in 2024 but also still well off the target that existed during Clean Car inducements. The top seller in passenger was the BYD Sealion 6, with 715 sold. Toyota moved 188 more RAV4s in December alone.
While fully fossil fuelled cars achieved lower share and a reduced accrual last year than in 2024, they still utterly dominate; with 81,895 registered for 59.4 percent of sales. In 2024, the count of 83,842 achieved a 65 percent slice.
Private buyers accounted for 38,712 passenger vehicles, a 39.5 percent share (in 2024 the count was 34,591 for 39.6 percent), businesses bought 40,138 (41 percent), Government achieved 1673, for 1.7 percent and rental secured 17,462 cars, for 17.8 percent. In 2024, the rental take was 14,180 units, for 16.2 percent.
The data says while the market strengthened overall last year, the performance in December was down by 9.8 percent, with 9304 new vehicles adding to the total annual tally.
Speaking to the market as a whole, Wiley said: “Activity lifted from mid year and finished ahead of 2024, supported by easing financial conditions and improving confidence, but demand remains measured.
“Buyers are prioritising value, practicality and suitability, whether that is in their choice of vehicle segment or motive power.
“What the data shows clearly is a market adjusting, with households and businesses being deliberate about the timing and scale of their purchasing decisions.”
Economic conditions improved through the second half of 2025, providing a more supportive environment for vehicle demand.
GDP returned to growth in the September quarter and business investment showed early signs of recovery, including in transport equipment.
Interest having rates eased during the year and the Official Cash Rate reducing to 2.25 percent by November were factors.
“Lower borrowing costs are flowing through to households and businesses, although labour market conditions remain soft and consumer spending uneven. Confidence improved toward year end, supporting larger purchasing decisions.”
The MIA notes that light commercial vehicle volume, which is underpinned by ute sales, eased in December but ended the year slightly higher than 2024.
“Business and fleet replacement demand remained supportive, with regional and rural activity providing a degree of resilience, resulting in this segment holding up better than more discretionary areas of the market.”
Heavy commercial vehicle registrations remained weak across the year.
Richard Bosselman is a highly regarded motoring journalist, based in New Zealand.
MotoringNZ reviews new cars and keeps readers up-to-date with the latest developments on the auto industry. All the major brands are represented. The site is owned and edited by New Zealand motoring journalist Richard Bosselman.
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