Motor vehicle price index in New Zealand - Data and Analysis (2006-2034)

The motor vehicle price index is estimated to rise by 0.3% in 2026-27, to 100.3 points. Stats NZ data shows the price of new motor cars rose 1.2% and the price of second-hand motor cars rose 1.5% over the year through the June 2026 quarter, although new car prices fell 0.9% during the June 2026 quarter itself. The New Zealand Government's (Te Kawanatanga O Aotearoa) Investment Boost policy has supported business vehicle demand since May 2025. This policy allows businesses to claim a 20.0% upfront tax deduction on qualifying assets that are new to New Zealand, including imported used assets. While the policy only applies to business purchases, stronger business demand supports overall market pricing and, over time, adds to the supply of second-hand vehicles available to households. Data from the NZ Transport Agency (Waka Kotahi) shows new passenger vehicle registrations rose 19.9% over the six months through September 2026, compared with the same period in 2025. However, growing competition is likely limiting price growth. Chinese brands' new passenger vehicle registrations more than doubled year-on-year to reach 26.2% of the market in July 2026, bringing sharper pricing to the mainstream market.The value of the New Zealand dollar has a significant effect on the motor vehicle price index. Imports account for the overwhelming majority of New Zealand motor vehicles. All new cars are imported into New Zealand for sale on the domestic market. Additionally, a large number of used cars are also imported into New Zealand, particularly from locations like Japan. The trade-weighted index can have a strong influence on the price of these vehicles, with domestic prices rising if the New Zealand dollar depreciates. This trend is particularly true for used cars, as their prices are less likely to be set by major international car manufacturers. The New Zealand dollar has depreciated over the past five years, placing upwards pressure on the price of imported cars. Additionally, a severe shortage of semiconductors and a surge in shipping costs increased the cost of importing vehicles to New Zealand, boosting the motor vehicle price index as motor vehicle sellers passed these additional costs on to consumers. These pressures peaked in 2021-22 and 2022-23 and have since eased.Sales of new cars have increased as a share of total car sales over the past five years. New car sales reached 62.0% of total car sales in New Zealand in 2022-23, but dropped back to 54.0% in 2023-24, and represented 60.8% of total registrations in the six months through September 2026. Supply chain disruptions weakened global production, driving up prices for new and used cars in 2021-22 and 2022-23. Overall, the price of motor vehicles is estimated to rise at a compound annual rate of 0.5% over the five years through 2026-27.