New Zealand importer 2 Cheap Cars reports a net profit of 3.2 million dollars for the 2025/26 fiscal year. Despite overall profitability, the company saw a significant hit to its bottom line due to rising carbon-credit costs associated with the Clean Car Standard.
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The 1.7 million dollar hit to NPAT shows exactly how carbon-credit costs act as a direct tax on importers. It is a clear example of how policy settings in the CCS move the needle on corporate margins faster than consumer demand does.
Interesting that they saw a recovery in the last quarter because of revised settings. It shows how sensitive these businesses are to the specific rules of the carbon accounting used for vehicle imports.
They are leaning hard on finance and insurance penetration to offset the regulatory costs. I wonder if the shift toward lower-emission vehicles will actually lower their credit costs long term or if the compliance burden just shifts to different line items.
