Cheap Chinese EVs could soon shake up NZ’s used car market. Are we ready? |
BYD’s electric Atto 1 looks much like any other modern city car. It has a five-star safety rating, a touchscreen-equipped interior and, by most accounts, is surprisingly refined to drive.
Little about it screams “cheap car” – except its roughly NZ$30,000 price tag.
That puts Chinese electric vehicles into interesting territory. They are no longer competing only with new Toyotas, Teslas and other EVs, but with the used petrol cars that still make up most vehicles on New Zealand’s roads.
To date, much of the conversation about widespread EV adoption has centred on emissions, charging infrastructure and incentives for motorists to make the switch.
But cheaper new EVs could have consequences well beyond EV uptake: they could push down the value of New Zealand’s petrol-powered fleet and disrupt the businesses built around it.
Our recent research into technological change helps explain why. As new technologies take hold, they can change which assets, skills and businesses remain valuable – potentially weakening those built around the technologies they replace.
How cheap EVs could change the price ladder
Falling EV prices have attracted attention before.
Tesla’s price cuts in 2021, combined with the since-scrapped Clean Car Discount, pushed an entry-level Model 3 below $60,000. Further cuts in 2023 briefly brought its post-rebate price........