NZ Sales: January sales decline

BROADER economic pressures and shifting buyer behaviours are making their presence felt on the New Zealand new car market.

January sales fell 14.1 per cent against the same time last year to total just 10,863 units.

New Zealand’s Motor Industry Association chief executive Aimee Wiley says the downturn highlights continued market adjustments, recognising small positives including the resilience of SUV and hybrid vehicle sales, reflecting evolving consumer preferences towards fuel efficiency and sustainability.

“The January 2025 vehicle registration figures highlight the ongoing adjustments within New Zealand’s automotive sector,” she said.

“The decline, particularly in light commercial vehicles, was expected following the exceptional spike in January 2024, which was driven by the removal of Clean Car Discount penalty fees.

“A comparison with January 2023, a more stable market period, suggests a broader downward trend across all vehicle segments.”

Ms Wiley emphasised that while consumer demand is gradually shifting towards SUVs and hybrid vehicles, the pace of this transition remains slower than what is required to meet the recently strengthened CO2 targets.

She said the industry faces “a complex challenge” in balancing regulatory compliance with evolving consumer preferences while ensuring that vehicles remain accessible and competitively priced.

“Managing this transition effectively is critical to preventing unintended market consequences, such as rising vehicle costs or supply constraints,” she added.

“While hybrid adoption remains strong, electric vehicle uptake has yet to see a significant rebound.

“Ensuring long-term affordability and sustainability in the market will require ongoing collaboration across the sector, with a focus on aligning supply with both regulatory requirements and real-world consumer demand.”

For the month of January, the Toyota RAV4 topped NZ’s sales charts, the Medium SUV selling 1023 units to take a 9.4 per cent share of the market (up 4.5 per cent).

The Toyota HiLux light commercial utility placed second with 614 unit sales and 5.7 market share points (up 0.5 per cent), while the Ford Ranger placed third with 553 unit sales and 5.1 market share points (down 6.6 per cent).

Business buyers drove the majority of January sales in New Zealand with 51.7 per cent of all purchases (5620 units). Private buyers followed with 39.6 per cent (4299 units), ahead of rental (6.3 per cent / 680 units) and government (2.4 per cent / 264 units) fleet buyers.

In terms of motive power, NZ buyers showed a continued preference for petrol- and diesel-powered vehicles with a majority share of 61.8 per cent (6708 units). Hybrid vehicles proved second most popular with 28.4 per cent (3082 units), ahead of battery electric vehicles (5.5 per cent / 595 units) and plug-in hybrid electric vehicles (4.4 per cent / 478 units).

Brand preference showed New Zealand buyers sticking with familiar favourites in January. Toyota topped the charts with 2458 unit sales (23 market share points), ahead of Ford (1017 units / 9 per cent), and Mitsubishi (918 units / 8 per cent).

Top 10 sales by Make (January passenger, SUV and light commercial):

Top 10 sales by Model (January passenger and SUV):

Top 10 sales by Model (January light commercial):

*All figures are supplied courtesy of the Motor Industry Association of New Zealand.