Business Environment Profiles - New Zealand
Published: 29 April 2024
Average age of vehicle fleet
15 Years
0.9 %
This report analyses the average age of New Zealand's vehicle fleet. This includes both passenger and commercial vehicles, motorcycles, trucks, buses and other vehicles. The data for this report is sourced from the Ministry of Transport (Te Manatu Waka) and is presented in calendar years.
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IBISWorld forecasts the average age of the vehicle fleet to increase by 0.8% in 2024 to 14.97 years. Rising cost of living pressures and growing interest rates have weighed on new vehicle sales over the 2024 calendar year. Additionally, significant supply chain disruptions, largely due to a global microchip shortage, have restricted the number of vehicles entering New Zealand. These factors have limited the number of vehicle sales, contributing to the average age of the vehicle fleet rising.
The composition of New Zealand's vehicle fleet has changed over the past five years. Light passenger vehicles are anticipated to account for approximately 75% of the vehicle fleet in the current year, having declined from just under 80% of the fleet just over a decade ago. Alternatively, light commercial vehicles have increased as a share of the vehicle fleet over the period. Light commercial vehicles are expected to have a lower average age than other vehicle types, which has contributed to slowing growth in the average age of the vehicle fleet. Additionally, increased purchases of new light commercial vehicles have also placed downward pressure on the average age of the vehicle fleet over the past five years.
Heavy commercial vehicles, motorcycles, buses and other vehicles, which together account for little over 9% of the vehicle fleet, typically have a longer working life and in turn a higher average age than light vehicles. Collectively, these vehicles have increased slightly as a share of the vehicle fleet over the past five years. This has contributed to an increase in the average age of the vehicle fleet.
New Zealand has traditionally relied on used imports to meet demand for motor vehicles, contributing to a higher average age of the vehicle fleet than other comparable countries, such as Australia. For example, in 2022, used vehicles accounted for approximately 42% of imported light vehicles and 32% of imported trucks, according to the Ministry of Transport (Te Manatu Waka). Used vehicles have fallen as a share of vehicle imports over the past five years, leading to weaker growth in the average age of the vehicle fleet compared to the previous decade. Overall, IBISWorld forecasts the average age of the vehicle fleet to rise at a compound annual rate of 0.9% over the five years through 2024.
The average age of the vehicle fleet is anticipated to contract by 0.4% in 2025, to 14.91 years. ...
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