Following the Government's announcement cutting Clean Car Standard penalties, VIA answered a range of media questions from One News, RNZ, and 3News. This article captures the essence of those interviews and our response.

Q1. What is VIA’s reaction to the Government reducing Clean Car Standard penalties?

We welcome it. The used-import sector has been hammered for the past 18 months by penalties that were simply too high to absorb. Those costs pushed everyday family cars out of reach for average Kiwi households. The Government has listened and recognised the pressure on dealers and families alike.

Q2. Why were the penalties so damaging?

Our sector supplies the affordable end of the market — typically cars in the $12–$18k range. Once you loaded Clean Car Standard penalties on top, the numbers simply stopped adding up. For a seven-seat people mover, the penalty could be around $3,000 — an immediate price-killer for a family trying to upgrade. Dealers closed their doors, long-established family businesses shut up shop, and volumes fell roughly 25%.

Q3. What will the reduced penalties achieve?

In short: affordability, supply, and stability. A vehicle that would have attracted a $2,700 penalty this year will attract around $800 next year. That moves it back into a price bracket families can manage. With reduced penalties, businesses are more likely to survive, stock volumes can stabilise, and families will have access to cleaner, safer cars.

Q4. Isn’t this “backsliding” on climate action?

No. When targets are so unrealistic that you can’t actually bring in replacement vehicles, you stall progress. Every used import we bring in is cleaner than the vehicle it replaces. The real backsliding comes when volumes crash and the 20-year-old cars on our roads stay there for longer. Refreshing the fleet — even with hybrids — cuts emissions in a way that is actually achievable.

Q5. Why are used hybrids being penalised? Aren’t they cleaner?

Yes, hybrids are cleaner — but next year’s target was still going to penalise almost every hybrid, new or used. That made no sense. Reducing the penalties avoids pushing genuinely better vehicles out of reach.

Q6. What about EVs? Aren’t we moving away from EVs?

The used-import sector would love to bring in more EVs — but Japan hasn’t produced used EVs in meaningful numbers over the last decade. On top of that, shipping restrictions on used EVs have reduced availability further. We can’t generate enough credits because the stock simply doesn’t exist. In the new-vehicle sector, it’s a different story — but that highlights why the policy needs to recognise the two markets separately.

Q7. Drive Electric says this change is “embarrassing” and will make NZ a dumping ground. What’s your response?

We reject the “dumping ground” rhetoric. New Zealand already has emissions standards that prevent dirty vehicles entering the market, and every used import we bring in today is lower in CO₂ than the average vehicle already on the road. We support lower-carbon outcomes — but they must be achievable and affordable for real people.

Q8. What does the sector want from the upcoming Clean Car Standard review?

A realistic redesign that recognises NZ has two very different markets:
• The new-vehicle sector (corporates, fleets, rentals, OEM-backed supply).
• The used-import sector, which supplies everyday households.

We want a standard based on what is actually available in Japan — the world’s right-hand-drive source market — and a pathway that keeps reducing emissions without destroying affordability.

Q9. Why was the industry hurting so badly?

Members have gone into liquidation. Thirty-year veterans have walked away. Businesses trying to pass the baton to the next generation were told by their own kids — “the numbers don’t work.” Penalties were rising while supply was shrinking. This relief stops the bleeding and gives the sector a fighting chance.

Q10. What is VIA’s final message to New Zealanders?

This is about keeping vehicle replacement moving. Every time a Kiwi replaces a 20-year-old car with a 9- or 10-year-old import, the fleet gets cleaner and safer. Reduced penalties don’t weaken climate progress — they keep it alive by making improvement achievable. The Government has shown it’s willing to listen, and we appreciate that.