One-Size-Fits-All Vehicle Policy Hinders Emissions Goals

Applying a single clean-car rule to both new and used imports is undermining New Zealand’s emissions goals, says VIA Chief Executive Greig Epps.

Greig Epps, Chief Executive of the Imported Motor Vehicle Industry Association (VIA), says the current Clean Vehicle Standard (CVS) is misaligned with how New Zealand’s vehicle market actually works. Rather than improving real-world emissions outcomes, the one-size-fits-all approach may be slowing down the very turnover the policy is meant to encourage.

“The CVS was designed to reduce emissions, but it’s applying the same rulebook across two very different markets,” Epps says. “New and used vehicles come into the fleet through separate channels, serve different customers, and respond to regulation in different ways.”

VIA welcomes a planned review of the CVS and is calling for a fundamental shift in how vehicle emissions policy is framed, from a narrow focus on what comes in, to a broader approach based on fleet management.

One standard, multiple objectives, unclear outcomes

VIA’s position is that the CVS has become unclear in its purpose. “It’s not just trying to reduce emissions,” Epps says. “It’s also trying to manage fleet composition, prevent poor-quality imports, and deliver reporting outcomes – ie ticking boxes. These aims are not always compatible.”

A key concern is that reported import-year averages are being treated as the policy goal, rather than one indicator among many. “Average CO on entry is easy to measure,” he says. “But it doesn’t tell us if the oldest, highest-emitting vehicles are being replaced. And that’s what drives real-world improvement.”

New and used vehicles require different tools

New-car imports are largely driven by manufacturers, global production cycles, and fleet or lease buyers. Used imports, by contrast, serve a cost-conscious household market and draw from vehicles already built, usually a decade earlier.

“You can influence future production with new-vehicle policy,” Epps says. “But you can’t go back and change what Japan built ten years ago. Used-import policy needs to focus on what those vehicles are replacing, and whether buyers can afford them.”

That difference matters because used imports are often the only affordable upgrade pathway for many households. Restricting that supply doesn’t drive down emissions averages, it slows down fleet turnover which drives up real-world emissions. “When people can’t afford to replace their cars, they keep the old ones. And those are typically becoming less safe and more polluting.”

Three principles for smarter regulation

VIA is urging policymakers to shift from an import-focused model to a fleet-based model for managing used. Epps highlights three priorities:

1. Put fleet turnover at the centre

“Turnover is what matters. If regulation slows down the replacement of old vehicles, we’re not making progress, even if average CO on entry looks better.”

2. Separate the objectives for new and used vehicles

New-vehicle standards can credibly influence supply and manufacturing trends. Used-vehicle policy should focus on affordability, turnover, and local impacts. “They’re different levers for different outcomes.”

3. Don’t mistake measurement for success

Average emissions are useful to monitor, but they are not the outcome. “A programme that hits the target but misses the point is not working,” Epps says.

Affordability defines the used market

Recent consumer data supports VIA’s concern about affordability. A survey by Turner’s Automotive Group found that 52 per cent of recent vehicle buyers spent under $15,000, while just 15 per cent spent over $40,000. “That tells you the used market is not a ‘back up’ version of the new market,” Epps says. “It’s a separate one, serving different consumers with different needs and resources.”

VIA points to the example of family-sized vehicles. While some new models are advertised as seven-seaters, they are not genuine substitutes for the second-hand imports most buyers are actually purchasing. “The average Kiwi family looking at a ten-year-old Estima at $15,000 is not choosing between that and a $49,000 new Outlander,” Epps says. “They are making decisions within their band of affordability.”

Policy must reflect how the fleet actually evolves

Epps says VIA supports regulation that addresses how vehicles enter, move through, and exit the fleet. “If the goal is lower emissions and a safer fleet, then fleet renewal matters as much as what powers the vehicles. We need rules that enable that turnover, not restrict it.”

He says that differentiation between new and used-vehicle rules is not market distortion. “It’s alignment. We’re not asking for lower ambition, but for ambition that works.”

For more information: www.via.org.nz

ABOUT

VIA (Imported Motor Vehicle Industry Association) represents businesses involved in importing, preparing, wholesaling, and retailing used vehicles into New Zealand, primarily from Japan, Singapore, and other markets. As the industry's collective voice, VIA engages with government and stakeholders to support fair regulation and sustainable practices across the sector.

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