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2007 Trends And Issues To Impact On New Zealand Motorists

The Clean Green Car Company identifies two emerging groups of car buyers and policy issues that may impact motorists in 2007

Auckland, Friday 26 January, 2007 - Motorists had their share of concerns and criticism to deal with in 2006. Rising fuel prices and on road costs, combined with pressure to improve fuel economy and reduce emissions have affected every car owner. These pressures have divided drivers into two distinct groups, according to The Clean Green Car Company. Both groups will be affected in 2007 by the continued fluctuation of oil prices and likely changes in government energy policy.

Two emerging groups of car buyers:

• High fuel efficiency (HFE) motorists - focused on fuel efficiency and environmental impact.
  


• Low fuel efficiency (LFE) motorists - don’t consider or are opposed to fuel efficiency and environmental concerns.
  

Predicted rise in fuel prices in late 2007 expected to:

• Increase number of HFE motorists.
  


• Increase shift in public perception about individual impact on the future environment.
  


• Negatively affect LFE motorists.
  


• Increase commuters’ use of public transport in Auckland.
  

The Clean Green Car Company, New Zealand’s only specialist in hybrid cars - vehicles which combine petrol and electric power, identifies the two distinct groups of drivers as follows. The first group makes its vehicle-purchasing decisions based on fuel efficiency and environmental impact. The second group does not believe that fuel efficiency or environmental issues affect their lives. This second group may, in fact, be actively opposed to the consideration of environmental concerns.

Stephen Pollard, Owner of the Clean Green Car Company, says, “The first group, the high fuel efficiency (HFE) motorists, will inevitably become predominant as fuel prices start rising again and as public awareness grows regarding the impact of car emissions on our and our children’s environment. These HFE motorists will look to replacing their older inefficient cars with environmentally-friendly alternatives, like hybrid cars.”

Pollard continues, “The second group, the low fuel efficiency (LFE) motorists, have been validated over the past six months with lower fuel prices. In the near future, they will continue to buy large inefficient cars and SUVs, as the secondhand price of these “status” vehicles continues its dramatic fall of the last 18 months. However, as fuel prices start to rise in the second half of the year, LFE motorists will again begin to feel the pinch. Furthermore, they are likely to be threatened by upcoming government policy changes in favour of HFE motorists. Accordingly, this group is likely to decline in number.”

The Clean Green Car Company also anticipates even more motorists will choose to commute in 2007, in response to rising fuel prices and government regulations and incentives. This will be particularly true on the North Shore in Auckland, when the new busway comes onstream.

Issues impacting motorists in 2007

Possible outcomes from Government draft energy strategy on low carbon transport:

• Adjusting annual car registration charges.
  


• Restructuring Road User Charges.
  


• Banning all imported used cars from Japan older than seven years.
  

In December 2006, the government released its draft energy strategy. Concrete policy indications from this strategy regarding low carbon transport will affect motorists. The specific possible outcomes to impact motorists, as identified by The Clean Green Car Company, are:

1. An adjustment of annual car registration charges. A carrot-and-stick approach will be used to promote the uptake of fuel efficient cars. Fuel efficient car owners will pay lower annual registration charges, while owners of inefficient cars will face higher charges.

2. The restructuring of the current Road User Charges regime. The current regime makes new efficient diesel technology used in modern diesel passenger cars uneconomic. Drivers will see a shift that favours efficient diesel technology.

3. A ban on importing used cars from Japan older than seven years. This ban will include SUVs and commercial vehicles (unlike the last law that effectively only banned cars older than 1996 and excluded SUVs and commercial vehicles)

Other reforms included in the government’s draft energy strategy address carbon trading protocols, land use issues, and building regulations. These reforms indicate the seriousness with which the government intends to address environmental concerns. The resulting policies and regulations will increase general public awareness while requiring individuals to take greater responsibility for their energy consumption.

Given all these pressures, from the fuel pump, from society at large, and from the government, 2007 trends in car use and car buying are likely to see a strong shift towards improved fuel efficiency and reduced emissions.

ENDS

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