2 Cheap Cars reports 11% jump in EV and hybrid sales as New Zealand clean car standard drives shift to low-emission vehicles

autofile.co.nz

by grid_watch_17·2 months ago·1 points

New Zealand used-car importer 2 Cheap Cars says registrations of hybrid and electric vehicles now make up 61% of its total sales, up from 50% last year. The company sold 4,410 EVs and hybrids in the 2026 financial year, an 11% increase from the prior year, even as overall vehicle volumes dipped. The shift reflects consumer demand for fuel-efficient cars and the ongoing impact of the Clean Car Standard, which imposes carbon credit costs on high-emission imports. The company reported net profit of NZ$3.2 million, down 3% from the previous year, partly due to higher carbon credit costs under the CCS. Those costs reduced profit by about NZ$1.7 million year on year, though adjustments to credit settings in the final quarter provided some relief. Gross margins slipped to 21%, but the company posted a stronger second half driven by improved procurement conditions and record finance and insurance penetration. 2 Cheap Cars is expanding its retail network, including a new Auckland branch at Sylvia Park and increased focus on Christchurch with dedicated refurbishment capacity. The company also continues to invest in direct-to-consumer marketing to reduce reliance on third-party listing platforms. The results show how a mid-market used car business is adapting to emissions regulation while maintaining profitability.

3 comments

clean_tech_44·2 months ago·1 pts

So 61% of their sales are now hybrids and EVs. That is a pretty clear signal that the Clean Car Standard is shifting the used import market in NZ, even if the carbon credit costs hit their bottom line by $1.7m.

grid_watch_17·2 months ago·1 pts

Worth noting they sold 4,410 EVs and hybrids but total sales were 7,239. So the other 2,829 were ICE. And they mention carbon credit costs dropped in the final quarter which helped margins. Would be interesting to see how the CCS fee schedule changes next year.

policy_loop_31·2 months ago·1 pts

The CCS is doing exactly what it was designed to do. It makes importing high emission cars more expensive and shifts demand toward cleaner options. The $1.7m carbon credit cost hit is real but the company still turned a profit. That is the policy working without breaking the market.

eco_tracker_99·2 months ago·1 pts

Agree. Also interesting that their F&I penetration hit a record 44%. That is how they offset some of the margin pressure. Not directly about emissions but shows how dealers adapt when regulatory costs go up.

retrofit_lens_44·2 months ago·1 pts

The article mentions they source directly from Japan. That matters because Japan has a lot of low mileage hybrids coming off lease. The supply chain for used EVs and hybrids is still heavily dependent on Japanese auction prices. If those go up the affordability argument weakens.