VIA welcomes relief and pushes for structural fixes in 2026 review 

The Imported Motor Vehicle Industry Association (VIA) welcomes the Government’s decision to reduce the Clean Car Standard (CCS) penalty for used vehicle imports to $7.50 per gram of CO₂ from 1 January 2026, applying through 2026–2027, alongside a major review of the CCS in 2026. 

VIA understands the penalty change will be included with legislation currently before the House that will extend credit life and enable credit trading between new-vehicle and used-vehicle accounts, with both measures set to commence 1 January 2026. 

“This is a sensible circuit-breaker,” said Greig Epps, Chief Executive of VIA. “It will take the heat out of prices while the system is reviewed. Our members have supplied the evidence and case studies that got us here, and we thank Ministers and MPs who listened.” 

Why it matters 

  • Around 70% of used imports are currently penalised and about half of those penalties are more than $1,000. At that level, buyers in the $10–$15k bracket often walk away or trade down, slowing fleet replacement. 
  • With fewer mid-life vehicles coming in to refresh the fleet, people are holding onto vehicles longer, increasing the age of the fleet and slowing – if not reversing – gains made in previous years. 
  • A lower penalty rate should stabilise retail pricing, keep buyers in the market, and accelerate fleet refresh, improving emissions and safety outcomes. 
  • Credit-life extension and cross-sector credit trading will help unlock value stranded in new-vehicle accounts and lower costs for consumers in the used market. 

VIA emphasised that the 2026 review must fix the underlying architecture, in particular the weight adjustment in the target-setting algorithm. 

“A key problem is weight adjustment,” Epps said. “It distorts outcomes for practical family cars. Judge vehicles on their actual emissions and let credit trading work across the whole market. That’s how you deliver affordable, lower-emitting cars into Kiwi driveways faster.” 

VIA also noted the importance of timely decisions in 2026 to avoid reform being delayed by the general election period. 

“We support pragmatic relief now and decisive settings next,” Epps said. “Keep the review tight and early, remove or neutralise weight adjustment for passenger vehicles, and make credit trading work in practice from day one.” 

 

For more information: www.via.org.nz