New Zealand’s car fleet – already older than other developed countries – is ageing further, a new report from the Motor Trade Association has revealed.
The report also highlights a slowing rate for take-up of electric vehicles.
The detailed examination of the country’s vehicle fleet was conducted by the Institute of Economic Research on behalf of the Motor Trade Association.
The light passenger vehicle fleet is an average of 15 years old, up from 14.3 years in 2015.
The average age of passenger vehicles in Australia is around 11.6 years, and just under 10 years in the UK.
The ongoing ageing of the New Zealand fleet was due to various reasons, the MTA report found.
“This is likely to be the result of light vehicles doing less mileage per year; greater vehicle reliability; and poor economic conditions, with New Zealanders being less likely to upgrade to a new vehicle,” said the MTA.
Used imported cars are becoming older too, at an average of 9.8 years old, up almost a year since 2015.
Motorcycles are the oldest type of vehicle in the fleet at an average of 22-years-old, up from 14.4 years in 2015.
Our ageing fleet means a slower take-up of new vehicle technology.
“The pace at which technology will be taken up in the New Zealand fleet is limited by the age of the fleet,” said the MTA.
MTA said the trend of an aging fleet was likely to continue, with newer cars becoming increasingly efficient and reliable, along with public transport becoming more popular, leading to lower mileage rates and cars being owned for longer.
New Zealand’s entire fleet of vehicles has grown over the last 10 years at a rate of 2.3% annually.
The number of vehicles is increasing above population growth, meaning the total number of cars on our roads has increased per capita since 2015.
Light passenger vehicles accounted for 75% of the county’s estimated 4.75 million vehicles.
Despite the number of cars increasing, electrification of cars remained slow moving.
Only 2% of all vehicles in 2025 were EVs – 101,000 vehicles.
Plugin petrol hybrids made up a larger portion of the fleet, with 429,000 on the road, still less than 10% of total vehicles.
The cost of EVs compared to petrol and diesel cars was still discouraging some buyers, the report found.
“The slow rate of electrification of light vehicles has been a result of the total cost of ownership and purchase price of EVs not yet being less than that of internal combustion engine vehicles, as well as a lack of options, until recently, for light commercial vehicles,” said the MTA.
As EVs become more common, the MTA predicted a reduced demand for petrol and other liquid fuels as well as less reliance on a traditional mechanic.
“Service stations will need to reinvent themselves as energy providers rather than just liquid fuel providers, by providing quick public charging infrastructure,” said the MTA.
But the impact of these changes was still over a decade away.
Internal combustion engines were forecast to still make up 73% of the light passenger vehicle fleet in 2035, compared to 95% today.
Heavy vehicles in the fleet are still almost entirely diesel-powered, except for buses.
– by Reuben Smith
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