New Zealand’s electric vehicle market is showing signs of recovery after several years of uncertainty, with Thundergrid CEO Jonny Parker saying the market has adapted after the removal of policy support that had previously helped drive adoption.
Speaking with Fleet News Group at the EV Infrastructure Summit, Parker said New Zealand had gone through a difficult reset after a change in government removed incentives and slowed the number of EVs entering the country. For several years, New Zealand had been a regional leader in EV adoption, with Australia watching closely as the market accelerated.
That momentum slowed sharply when policy settings changed.
Parker described the period that followed as a “two-year drought” for EV supply and demand, with the market effectively held back by reduced incentives, lower confidence and fewer vehicles arriving in the country.
However, in 2026, the market is beginning to shift again.
Economics now driving the EV conversation
According to Parker, the next phase of EV adoption in New Zealand is being driven less by environmental messaging and more by economics, fuel security and operating cost.
Thundergrid has been arguing that electric vehicles should be viewed as an economic and energy security decision, not only as a sustainability choice. With fuel price volatility adding pressure to households, businesses and freight operators, EVs are starting to be seen as a way to reduce exposure to imported fuel and provide greater control over operating costs.
That change in the conversation appears to be helping rebuild confidence, particularly among corporate and fleet buyers that had kept EV transition plans on the shelf during the slower period.
Parker said more corporates are now returning to those plans and preparing to add EVs to their fleets.
EV sales lift from a low base
The new car market is also showing signs of renewed interest.
Parker said EVs had been sitting at around 4.5 to 5 per cent of new car sales during the slower period. That was well below the levels New Zealand had achieved when policy support and market confidence were stronger.
In early 2026, EV sales began to rise again. Parker said April sales lifted to around 12 per cent and were heading towards 14 per cent, showing that demand had not disappeared.
A softer result followed in May, but Parker said this was not a sign of weakening demand. Instead, available stock had been sold quickly, leaving dealers short of supply. Some buyers were effectively purchasing vehicles before they arrived in the country, with cars being sold “off the boat”.
As those vehicles arrive, Parker expects the sales numbers to lift again, suggesting the New Zealand market could be moving back towards stronger levels of EV adoption.
Market adapts after incentives disappear
New Zealand’s experience shows the impact policy can have on EV adoption. The removal of incentives slowed the market, reduced supply and caused some organisations to delay their transition plans.
But the market has not disappeared. It has changed.
The first phase of New Zealand’s EV growth was supported by government policy, consumer incentives and strong public interest. The next phase appears to be more focused on total cost of ownership, fuel risk and the practical economics of running vehicles.
For fleets, this shift may be important. A business case built only around incentives can be vulnerable when policy changes. A business case built around utilisation, energy costs, route planning, charging access and whole-of-life cost is more durable.
That is where Parker sees the market heading.
Heavy vehicles begin to prove the business case
While light vehicles remain the largest part of the EV market, Parker said heavy vehicles are also starting to gain traction in New Zealand, especially in last-mile delivery.
These operations often have predictable routes, high daily utilisation and regular depot return patterns, making them well suited to electrification when charging infrastructure is planned correctly.
Thundergrid is currently working with a customer operating a 600kWh electric truck, which Parker said is one of the first of its kind in New Zealand. Early results have been promising, with the customer reporting $30,000 to $40,000 in operating cost savings over three months.
That level of saving is getting attention because it demonstrates that electric trucks can be more than a trial or sustainability project. For the right application, they can become a genuine cost-reduction strategy.
Parker said the electric heavy vehicle market is still small and remains in the trial stage for many operators, but the conversation is changing. Electric trucks are now being considered as a practical pathway for some freight tasks.
A lesson for Australia
Parker said Thundergrid had also noticed the Australian EV market cooling at the start of 2026, with urgency easing and some concern that Australia could follow New Zealand into a similar pause.
However, rising fuel costs may change that dynamic.
For Australian fleets, New Zealand’s experience provides a useful case study. Policy support can accelerate adoption, but the long-term business case needs to stand on its own. Fleets that understand their vehicle utilisation, energy needs, charging windows and operating costs will be better placed to make decisions regardless of government incentives.
New Zealand may no longer be racing ahead of the region as it was several years ago, but the market is moving again. The next stage of growth is likely to be more measured, more commercially focused and more closely tied to fleet economics.
After a difficult policy reset, New Zealand’s EV market appears to be finding its feet.
