Transport & Fuels — Energy Pulse NZ

Transport Overview

NZ's vehicle fleet and its role in emissions

4.7M

Total vehicles

Up 48% since 2005

~21%

Of NZ emissions

Second largest sector

817

Vehicles per 1,000 people

One of highest globally

99%

Transport energy from fossil fuels

Petrol, diesel, jet fuel

Vehicle Fleet Composition (2024)

74%

Light Passenger

16%

Light Commercial

4%

Heavy Vehicles

3%

Motorcycles

2.5%

EVs (all types)

By Fuel Type (ICE vehicles)

Petrol~70% of light fleet

Diesel~25% (80%+ of commercials)

Hybrid (non-plug-in)~3%

Electric (BEV + PHEV)~2.5%

Why Transport Matters

Transport is NZ's second largest emissions source after agriculture
Light vehicles (cars, utes) account for ~65% of transport emissions
Heavy vehicles (trucks, buses) contribute ~25%
Aviation and shipping make up the remainder
Transport emissions have risen steadily over 30 years
Average Kiwi drives 22km per day — easily within EV range

High car ownership: NZ has 817 vehicles per 1,000 people — one of the highest rates in the world. 85% of homes have off-street parking, making EV charging at home easier than in many countries. But it also means a lot of cars to replace.

Sources: Ministry of Transport Fleet Statistics 2024, EECA, Environmental Health Indicators NZ

Electric Vehicles

NZ's transition to electric transport

~119,000

Electric vehicles on NZ roads (Dec 2024)

~84,000 BEVs + ~35,000 PHEVs | ~2.4% of light vehicle fleet

~11%

Plug-in EV share

New sales (2024)

80%

Fewer CO₂ emissions

vs. petrol (in NZ)

1,200+

Public chargers

~1 per 60 EVs

$76

Road user charge

Per 1,000km (from Apr 2024)

EV Growth Story

2019	~15,000 EVs	0.3% of fleet
2021	~30,000 EVs	Clean Car Discount starts
2023	~104,000 EVs	27% of new sales
2024	~119,000 EVs	11% of new sales

EV sales collapsed in 2024 after Clean Car Discount ended (Dec 2023) and Road User Charges began for EVs (Apr 2024). Market share fell from 27% (2023) to 11% (2024). Hybrids (non-plug-in) now account for ~34% of new sales.

EV Economics

Fuel savings: $2,000-3,000/year vs. petrol
Home charging: Equivalent to ~$1.60/L petrol
Maintenance: ~50% less than ICE vehicles
RUC: $76/1,000km (BEV), $38 (PHEV)
Most popular: Nissan Leaf (~30% of BEVs)
Second-hand imports: ~95% of Leafs from Japan

Why EVs work well in NZ: With ~85% renewable electricity, NZ EVs produce 80% fewer lifecycle emissions than petrol equivalents. The average 22km daily commute is easily within battery range. 85% of homes have off-street parking for home charging.

Charging Infrastructure

🔌

Public Chargers

1,850+

Locations nationwide

⚡

Fast Chargers

350+

DC 50kW+ sites

🚀

Ultra-Fast

85+

150kW+ locations

Regional EV Ownership (per 1,000 people)

Wellington30.1 EVs

Auckland27.6 EVs

Canterbury23.8 EVs

National Average21.5 EVs

West Coast6.6 EVs

Sources: Ministry of Transport, EECA, EVDB.nz, Environmental Health Indicators NZ

Fuels & Imports

Where NZ's transport fuel comes from

100%

Refined fuel imported

Since Marsden Point closed

~3.5B

Litres/year

Through Channel Infrastructure

$2.63

Avg petrol price

Regular (late 2023)

40%

Auckland/Northland share

Via Marsden Point terminal

Refinery closure (2022): New Zealand's only oil refinery at Marsden Point ceased refining operations in April 2022. All petrol, diesel, and jet fuel is now imported as finished product — mainly from Singapore, South Korea, and Japan. Channel Infrastructure operates the site as an import terminal.

Fuel Types Consumed

Fuel	Main Use	Trend
Petrol	Light passenger vehicles	Stable
Diesel	Trucks, utes, commercial	Stable
Jet fuel	Aviation	↑ Recovering
LPG	Some vehicles, heating	Small share

Import Sources

Singapore — largest source of refined products
South Korea — major refining hub
Japan — refined products
Australia — some refined products

Note: NZ produces crude oil in Taranaki but exports it (higher quality fetches better prices overseas). Domestic crude was never refined locally — the Marsden Point refinery used imported Middle Eastern crude.

Fuel Distribution

Key infrastructure for getting fuel around NZ:

Channel Infrastructure (Marsden Point) — import terminal handling 40% of NZ fuel, 170km pipeline to Auckland
Wiri depot — major storage near Auckland Airport, jet fuel pipeline to airport
Mount Maunganui — Gull's independent terminal
Timaru — Tasman Fuels terminal for South Island
Major retailers: Z Energy, BP, Mobil, Gull

Sources: MBIE Energy in New Zealand 2024/2025, Channel Infrastructure

Heavy Transport & Freight

Trucks, aviation, shipping — the hard-to-decarbonise sectors

~25%

Of transport emissions

From heavy vehicles

~80%

Freight by road

Trucks dominate

94.5%

Freight emissions from trucks

Rail & coastal shipping far lower

350

Electric buses

3% of bus fleet (2024)

Freight Mode Comparison

🚛 Road Freight (Trucks)

Dominates NZ freight with ~80% of tonne-km. Flexible but high emissions. Nearly all diesel-powered.

Highest emissions per tonne-km

🚂 Rail Freight

~25% of truck emissions per tonne-km. Limited network but efficient for bulk goods. Some electrified lines.

~1/4 of truck emissions

🚢 Coastal Shipping

Lowest emissions per tonne-km — about 1/5 of trucking. Under-utilised for inter-island freight.

~1/5 of truck emissions

✈️ Aviation

Domestic and international. Air NZ alone emits 3.5+ Mt CO₂/year (~4% of NZ total). Hard to decarbonise.

High emissions, essential service

The challenge: Heavy transport is harder to electrify than cars. Trucks need large batteries (reducing payload) or hydrogen fuel cells (expensive, limited infrastructure). Aviation may need sustainable aviation fuels (SAF) or new aircraft technology. Solutions exist but are years away from scale.

Decarbonisation Progress

✓ Happening Now

Electric buses in Auckland, Wellington (350+ deployed)
First electric milk tanker (Fonterra fleet)
First hydrogen truck (Hyundai/NZ Post trial)
Electric ferries for Auckland Harbour (2024)
KiwiRail replacing diesel locos with electric
Low Emission Transport Fund trials

⏳ On the Horizon

Sustainable Aviation Fuel (SAF) mandate
Heavy vehicle charging infrastructure
More electric truck models available
Hydrogen infrastructure (limited)
Sounds Air electric planes (19-seater)
Modal shift to rail/coastal shipping

Sources: Climate Change Commission, EECA, Ministry of Transport, The Conversation

Transport Decarbonisation

Policy, targets, and the path forward

50%

EV sales target

By 2029

2035-40

ICE import ban

Planned phase-out

+20%

Electricity demand

If all light vehicles electric

47%

EV km by 2035

Of light vehicle travel

Key Policies

Policy	Status	Impact
Clean Car Standard	✓ Active	CO₂ limits on imports (63g/km by 2027)
Clean Car Discount	Ended Dec 2023	Was up to $8,625 rebate for new EVs
EV Road User Charges	✓ From Apr 2024	$76/1,000km for BEVs
Low Emission Heavy Vehicle Fund	⚠ Timing uncertain	$30M for hybrid/zero-emission trucks
SAF Mandate	⚠ In development	Sustainable aviation fuel requirements
ICE Import Phase-out	Planned 2035-40	Ban on new petrol/diesel vehicle imports

The opportunity: If NZ electrifies its light vehicle fleet, total electricity demand would increase by ~20% — manageable within normal grid growth if most EVs charge off-peak. By 2035, nearly half of all light vehicle kilometres could be electric, dramatically cutting transport emissions.

Grid Impact: EV Uptake → Peak Demand

The grid impact depends heavily on when people charge, not just how many EVs exist. Managed charging (off-peak, overnight) dramatically reduces infrastructure stress.

EV Fleet Size	Unmanaged Peak	Managed (Off-peak)	Notes
Today (~119k EVs)	+50-80 MW	+10-20 MW	Negligible system impact
500k EVs (~2030)	+300-500 MW	+50-100 MW	Manageable with smart pricing
1M EVs (~2035)	+700-1,000 MW	+100-200 MW	Distribution stress in urban areas
Full fleet (~3.5M)	+2,500-4,000 MW	+400-800 MW	Requires grid investment either way

Estimates based on 7kW home charger average, 15 kWh/day consumption. Unmanaged = 5-8pm charging; Managed = overnight/controlled. Actual impact depends on charger mix, driving patterns, and grid topology. Current NZ peak demand: ~6,500-7,500 MW.

Distribution vs generation: The bigger challenge is often local distribution networks (transformers, street-level cables) rather than total generation capacity. Urban substations serving 50+ homes may need upgrades before EVs reach 30-40% penetration — even if total national generation is sufficient.

Three Priorities for Transport Decarbonisation

1️⃣ Reduce Travel Demand

Remote work, better urban planning, public transport investment. Each Kiwi household switching 2 short trips/week to walking/cycling saves ~100,000t CO₂/year nationally.

2️⃣ Shift to Lower-Emission Modes

More public transport, cycling, rail freight, coastal shipping. Modal shift can cut emissions without waiting for new technology.

3️⃣ Improve Vehicle Efficiency

Electrify cars and light trucks, switch heavy vehicles to low-carbon fuels (hydrogen, biofuels, electricity where feasible).

Climate Change Commission assessment (2025): Transport emissions present "moderate risks" due to potential for continued low EV adoption without policies to lower upfront costs. Freight emissions present "significant risks" due to uncertainty around heavy vehicle decarbonisation timing and funding.

Sources: Climate Change Commission, EECA, Ministry of Transport, Emissions Reduction Plan