Toyota and Chery note uptake in electrified vehicles has 'increased dramatically'

Kiwis are voting with their wallets on dealership lots as the price of fuel pushes more customers to consider new brands and electrified options in New Zealand's new car market.

New data from local operators suggests Kiwi buyers are rapidly shifting away from traditional internal combustion engine (ICE) vehicles in favour of hybrids, super hybrids and full electric options, as petrol prices climb.

Speaking with CarExpert NZ, Chery Australia and New Zealand chief operating officer Lucas Harris said the sales mix of powertrains across its brands – Chery, Omoda, and Jaecoo – has “considerably switched” in recent weeks.

“Both here in New Zealand and across the ditch, the uptake in electrified options has increased dramatically,” Mr Harris said.

Harris says that shift is already showing up in sales figures. The Omoda E5 and Jaecoo J5 electric SUVs have combined for around 150 sales month-to-date, marking a clear uptick in EV demand.

It’s a notable change in direction, especially given the brand has only recently introduced petrol-powered versions of models like the Tiggo 7 and Tiggo 8.

“Had we known what was going to happen now, we probably wouldn’t have bothered, to be honest, because the uptake in super hybrid variants has really gone off,” Harris said.

The surge in demand isn’t limited to EVs either. Interest in hybrid and ‘super hybrid’ models has also spiked, with buyers increasingly weighing up alternatives to petrol-only vehicles.

Toyota New Zealand, the country's best-selling carmaker, has noticed the exact same trend. They have reported a 'sharp spike' in interest in their electrified vehicles, with local dealerships reporting increased enquiries and test drives across hybrid, plug-in hybrid and EV models.

Toyota New Zealand chief strategic officer Andrew Davis says customers are actively reassessing their entire cost-of-ownership calculations.

“Whenever fuel prices rise sharply, Kiwis start doing the maths," said Davis.

"What we’re seeing right now is strong interest right across our electrified line-up, from hybrid vehicles through to plug-in hybrids (including the soon-to-be-introduced RAV4 PHEV), and our new generation fully electric bZ4X.

“What’s different this time is how many customers are already familiar with electrified vehicles and are ready to take the next step.”

Chery says higher fuel prices are also pushing more customers to consider newer or less established brands, as they broaden their search for better value and lower running costs.

That’s reflected in strong engagement at dealerships, with the company reporting a high conversion rate from test drives to actual orders.

“If you look at our stats, test-drive-to-order, it’s like 70 per cent,” said Harris.

“The real trick for us is getting people through the door. Most people are impressed – it’s not what they expected.

“Seven out of 10 who test drive end up placing an order. You don’t see a ratio like that unless people are genuinely surprised by what they experience.”

Despite the current surge in demand, Chery doesn’t expect this level of interest to remain indefinitely. The recent spike has coincided with geopolitical tensions in the Middle East, which have contributed to higher global fuel prices and increased consumer awareness around fuel efficiency and alternative powertrains.

“Will it go back to the way it was 10 weeks ago? Probably not,”said Harris.

“Will it stay at this sustained level? Probably not either – there will be some adjustment.

“Right now it’s a hot topic. People have suddenly become more conscious, more aware, and more educated about hybrid options.

“That’s good for the industry, because people are paying more attention. But once fuel prices normalise, it may not be as big a factor in the decision-making process as it is today.”

However, for now it’s clear that rising fuel costs are accelerating the shift towards electrified vehicles in New Zealand.