Government changes to the Clean Car Standard (CCS) from January 2026 mark a critical reset in the used vehicle supply chain, restoring access to essential vehicles for Kiwi households.
From 1 January 2026, CCS penalties for used imports will reduce to between $6 and $7.50 per gram, reversing a trend that had made many family vehicles uneconomic. While this does not undo all the challenges created by the CCS, it allows importers to re-engage with vehicle segments that had effectively been shut out of the market.
Greig Epps, chief executive of the Vehicle Importers Association (VIA), says the adjustment gives the sector room to operate again, after two years of mounting pressure. “This is not a full solution,” Epps says. “But it reopens choice for households who had been priced out of the market for people movers, wagons, and practical mid-size vehicles.”
The Clean Car Standard was designed to accelerate the shift to lower-emission transport, but it applied a universal framework to two fundamentally different markets: new vehicles and used imports. The result, Epps says, was structural distortion. “Used importers work with what’s already in Japan. We don’t control what’s produced. The CCS was structured around the new-vehicle sector, which can coordinate with manufacturers to deliver compliant models.”
In practice, CCS penalties of $1,000 to $3,000 per vehicle became common across popular family vehicles like the Toyota Estima and Nissan Serena. These vehicles, often the only affordable option for larger families, vanished from the market or increased in price to the point where buyers traded down to older, more travelled vehicles. This unintended consequence undermined the environmental purpose of the CCS by slowing, even stalling, fleet renewal.
“The 2026 change won’t make vehicles cheaper across the board,” Epps says. “But it does allow importers to re-enter segments that matter. Households will see more choice, especially in vehicles that had all but disappeared.”
Why this matters for households
The CCS was affecting more than just vehicle availability; it was reshaping what types of vehicles families could access at key price points.
- Restoring access to practical vehicles
Many households depend on larger, mid-life vehicles to meet day-to-day needs. The CCS had made these vehicles unviable to import. Epps says auction data from Japan shows renewed interest from New Zealand buyers. “We’ve seen a 20 to 30 per cent lift in bidding from Kiwi traders since the change was signalled. That’s not about volume, it’s about variety. Importers can now compete for vehicles that fit Kiwi needs.”
- Fleet age and emissions go hand in hand
Evidence presented in VIA’s policy papers shows that when mid-life vehicle imports are constrained, the average age of the fleet rises. “Affordability plays a major role,” Epps says. “If households can’t access vehicles in the $10,000 to $15,000 range, they tend to hold on to older vehicles longer. That increases actual emissions on the road, not lowers them.”
- Local context must drive regulation
VIA has long argued that the emissions framework for used vehicles must reflect the reality of Japan’s export market. Japanese emissions standards are built around stop-start city driving. European standards are optimised for high-speed fuel efficiency. “Trying to force equivalence between the two has created mismatches,” Epps says. “We are sourcing Japanese vehicles from around 2015, give or take a year, when their emissions standards were called ‘world leading’. But now, those cars are penalised out of the CCS system.”
Looking ahead: 2026 and beyond
The recent penalties reset provides only temporary relief. The bigger test comes with the 2026 CCS review. VIA is calling for a permanent split in how new and used imports are treated under the system.
Epps says, “New vehicle distributors plan years in advance. They can commission compliant models and generate credits. We can’t. We work with what already exists. The policy needs to reflect that because Kiwis rely on the vehicles we deliver.”
VIA’s proposal includes a separate CCS track for used imports, calibrated to the vehicles available in Japan at price points under $15,000. These vehicles (typically nine to ten years old) balance emissions, safety, and affordability. A key test for the Minister when setting the CCS levels is “affordability”.
“We’re not asking for exemptions,” Epps says. “We’re asking for fit-for-purpose policy. A split system would maintain emissions goals and keep the market functional.”
VIA is also seeking updates to weight-based targets and clearer guidance on emissions equivalency between jurisdictions. As Epps puts it, “We want the CCS to work. But it has to work in the real-world context of the used market.”
Takeaways for policymakers
- Affordability is a fleet-emissions lever: Vehicles priced under $15,000 are central to maintaining fleet renewal and reducing emissions at scale.
- Used and new supply chains are structurally different: A single policy framework does not serve both effectively.
- Market signals show relief is working: Importer bidding behaviour indicates renewed access to previously unavailable vehicle types.
Pull quote suggestion:
“We’re not asking for exemptions. We’re asking for fit-for-purpose policy.” — Greig Epps, VIA
For more information: www.via.org.nz
