The Government has set itself a bold and necessary challenge: to transition New Zealand to a universal road user charging (RUC) system, covering the entire vehicle fleet. VIA supports this direction. Ensuring that all motorists pay their fair share to fund the roading network — regardless of fuel type — is a logical step forward, especially as the current system becomes increasingly unbalanced with the rise of electric and hybrid vehicles.

However, good intentions alone won’t deliver a fair or functional system. The shift to universal RUC requires more than policy ambition; it demands robust systems, infrastructure, and critically, a clear-eyed understanding of the technology landscape, as well as adequate penalties for non-compliance and fraud.

The most efficient and effective implementation of universal RUC will require some form of technology — either embedded within the vehicle, connected externally, or affixed at the point of entry into the fleet. There is no getting around that. But as the Government explores how this technology might be deployed, it is vital to recognise the global difficulties in this space.

Global Lessons in Vehicle Connectivity

Governments around the world have struggled to introduce vehicle connectivity solutions that are interoperable, affordable, and widely adopted. The recent Austroads report, Local Government Readiness for Connected and Automated Vehicles, highlights just how far most jurisdictions still are from full CAV (Connected and Automated Vehicle) readiness. In both Australia and New Zealand, local councils manage over 85% of the road network, yet they face significant barriers: limited digital infrastructure, unclear legal frameworks, and gaps in technical capability.

The report stresses that there is no one-size-fits-all solution — and that emerging vehicle technologies are arriving faster than the ability of governments to standardise or regulate them. It also highlights that while physical infrastructure remains a key focus, digital infrastructure — including roadside units and reliable data-sharing protocols — is still patchy or underdeveloped.

The Used Import Reality

New Zealand’s vehicle fleet is unique in its heavy reliance on used imports, particularly from Japan. These vehicles often come equipped with connected tech at the factory, but in many cases this tech is either incompatible with NZ communications networks, inoperable outside its home country, or legally unusable due to spectrum conflicts (e.g. Toyota’s ITS Connect system operating on 760MHz). Even when the technology remains intact, it may not do what New Zealand’s RUC system needs — such as providing accurate distance data or real-time transmission of that data to regulators.

VIA members have long supported innovation and have successfully introduced thousands of low-emission vehicles into the fleet. However, the experience of trying to enable connected tech in used imports has shown that OEMs (original equipment manufacturers) offer little to no post-sale support for vehicles imported into markets they don’t directly supply. That means even when the tech is physically present in a car, getting it to work here is another story — and often a dead end.

So What’s the Answer?

If the Government is serious about equitable, enforceable road user charging, the reality is this: any solution relying on embedded vehicle tech alone will exclude large parts of the fleet, especially used imports. The alternative is to introduce a retrofit solution — an add-on device or system (such as an OBD plug-in, RFID tag, or GPS tracker) — that enables compliance with the RUC regime regardless of a vehicle’s original configuration.

This is not only fair, but scalable. It also has the added benefit of being able to be rolled out to existing fleet vehicles, not just those entering the country, accelerating uptake and levelling the playing field across all vehicle owners.

Collaboration, Not Complication

VIA understands that the Government is proactively working with industry and community stakeholders to design a system that works. We support this approach. The challenges are significant — questions of compliance, enforcement, debt recovery and affordability must all be addressed alongside technology decisions.

But good design starts with recognising the limits of what’s currently feasible. The technology pathway for a universal RUC system will need to accommodate the diversity of our vehicle fleet — and avoid solutions that rely too heavily on OEM goodwill or proprietary systems. As discussions continue, we urge policymakers to adopt a practical and inclusive approach, and to engage with those closest to the realities of the fleet: the importers, retailers, and compliance professionals who manage these vehicles every day.

Let’s not build a system for an idealised fleet we don’t have. Let’s build it for the one we do — and make sure it’s ready for the future as it evolves.