New Vehicle Market Continues Measured Growth Trajectory

5 MAY 2026

Market Overview

New Zealand’s new vehicle market recorded a solid increase in April 2026, with 9,864 registrations, up 11.7 percent year on year. Growth was driven by stronger activity in the Light Passenger segment, which increased 16.9 percent, while Light Commercial volumes were broadly flat, up 0.5 percent, and Heavy Commercial registrations eased slightly, down 0.3 percent. The result reflects continued resilience in light passenger demand across both private and business buyers, although performance across segments remains uneven.

On a year to date basis, registrations reached 46,688 units, up 12.9 percent compared with 41,365 over the same period in 2025. This cumulative result points to sustained underlying demand, with a gradual shift in mix toward Light Passenger vehicles. While monthly outcomes can vary, the year to date trend indicates stable expansion across the industry.

Motor Industry Association Chief Executive, Aimee Wiley, said the April result reflects a continuation of steady year on year growth, with the market maintaining a clear lead on a year to date basis. Passenger vehicles are driving much of the increase, while commercial segments are showing more moderate movement. At the same time, broader economic conditions are becoming more complex, contributing to more varied performance across segments. Overall, the industry remains stable, with demand holding at consistent levels.

Economic Context

Recent economic assessments indicate that elevated fuel costs and associated increases in transport and operating expenses are contributing to tighter household and business budgets, influencing discretionary spending and investment decisions. Fuel prices are expected to remain above levels seen in recent years, adding to vehicle running costs and broader inflationary pressures.

At the same time, consumer and business confidence has softened. Households continue to face cost-of-living constraints, while businesses are adopting a more cautious approach to hiring and investment. While migration remains supportive of underlying demand, the near-term environment is characterised by tighter financial conditions and more measured spending patterns.

Motive Power Trends

Battery electric and plug in hybrid vehicles increased their share of registrations in April, accounting for 11.1 percent and 11.9 percent of the market respectively. Together, these vehicles represented just under a quarter of total registrations, remaining well above levels observed in prior periods and indicating a continued shift in the overall fleet mix.

This follows the stronger movement observed in March, although the pace of increase has moderated, suggesting a more measured pattern of demand across electrified segments.

Hybrid vehicles continue to maintain a significant presence across the market, while internal combustion vehicles remain the largest component of registrations, although their share has declined relative to prior periods.

Summary

The new vehicle market expanded in April, supported by growth in passenger vehicles. Year to date results confirm a stable pattern of expansion across the industry. While economic conditions are becoming more challenging, overall demand remains consistent.

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