The New Zealand Light Vehicle Fleet

The New Zealand Light Vehicle Fleet LIGHT FLEET STATISTICS 26 September 27 STATISTICAL REPORT

REVISION HISTORY Version Date Comments 1 September 1, 27 1 of 42

TABLE OF CONTENTS REVISION HISTORY... 1 TABLE OF CONTENTS... 2 FOREWORD... 3 1. SETTING THE SCENE THE LIGHT VEHICLE FLEET IN CONTEXT... 4 How much is the total fleet growing?... 4 What part of the fleet contributes the most travel?... 5 Is the light fleet travel done by New Zealand new or used imported vehicles?... 5 What are the trends in mobility?... 6 How does New Zealand s level of motorisation compare internationally?... 8 How does the age of the New Zealand fleet compare internationally?... 8 What proportion of vehicle emissions is the Light Fleet responsible for?... 1 2. COMPOSITION OF THE LIGHT FLEET... 11 3. VEHICLE TRAVEL AND AGE IN 26... 16 4. LIGHT FLEET ENGINE CAPACITY TRENDS... 18 5. WHICH VEHICLES ARE ENTERING THE LIGHT FLEET?... 21 6. WHAT VEHICLES ARE LEAVING THE LIGHT FLEET?... 25 7. QUARTERLY FLEET REPORTS: WHAT VEHICLES ARE JOINING AND LEAVING THE LIGHT FLEET?... 26 8. HOW MUCH OF THE LIGHT FLEET IS DIESEL POWERED AND HOW FUEL ECONOMIC IS THE LIGHT FLEET?... 3 9. WHAT IS THE AVERAGE VEHICLE ENGINE SIZE AND AGE OF THE VEHICLES IN USE?... 36 1. ECONOMIC INDICATORS... 37 APPENDIX A COMPARABILITY WITH OTHER PUBLISHED DATA... 39 2 of 42

FOREWORD It is my pleasure to introduce The New Zealand Light Vehicle Fleet, a comprehensive statistical report that will generate a better understanding of our unique fleet composition. It pulls together for the first time a range of estimates and statistics used by the Ministry of Transport. Understanding our vehicle fleet and its behaviour is an essential step to achieving a safe, sustainable and integrated transport network. This information will contribute to the development of specific targets under the draft New Zealand Energy Efficiency and Conservation Strategy and high-level targets under the update of the New Zealand Transport Strategy. The government is committed to improving the quality of our vehicle fleet, particularly in regard to matters of air quality, safety, energy efficiency and fuel security. Future policy can only develop effectively by having this solid knowledge base to start from. Work programmes such as the development of a sales-weighted standard for fuel economy, improving vehicle safety technologies, and encouraging the uptake of electric vehicles, will reap benefits from the information this document provides. This document is a snapshot of our current, but dynamic, light vehicle fleet. The New Zealand Light Vehicle Fleet will be updated annually and posted on the Ministry of Transport website. Hon Annette King Minister of Transport 3 of 42

1. SETTING THE SCENE THE LIGHT VEHICLE FLEET IN CONTEXT How much is the total fleet growing? The New Zealand vehicle fleet is dominated by the light fleet. The light fleet comprises light passenger and light commercial vehicles (cars, vans, utes, four wheel drives and sports utility vehicles (SUVS) under 3.5 tonnes). For the purpose of this analysis, motorcycles have not been included in the light fleet as their numbers are limited (see Figure 1.1), and their life cycle is different (although selective motorcycle data is shown in some of the graphs). The light fleet has grown significantly in the past decade with a 22% increase between December 2 and December 26. Appendix A details how this data was categorised from the Motor Vehicle Register. Figure 1.1 : Total Fleet Composition 3,, Vehicles 2,, 1,, 2 21 22 23 24 25 26 Light Passenger Light Commercial MCycle Heavy Commercial Bus 14% Figure 1.2 : Total Fleet composition relative to Jan 2 Percentage change 12% 1% 8% 2 21 22 23 24 25 26 Light Passenger Light Commercial MCycle Heavy Commercial Bus 4 of 42

What part of the fleet contributes the most travel? Travel on New Zealand roads is dominated by the light fleet. Light passenger vehicles contributed 78% of road travel in 25, and light commercial vehicles a further 14%. Only 8% of road travel was by other vehicles (motorcycles, heavy commercial vehicles and buses). 8% Figure 1.3a : Travel in 26 14% 78% Light Passenger travel Light Commercial travel Other travel Is the light fleet travel done by New Zealand-new or used imported vehicles? The light passenger and commercial fleets are significantly different. Light passenger travel is almost equally split between vehicles imported new into New Zealand and used imported vehicles. Light commercial travel is dominated by New Zealand-new vehicles. 3% Figure 1.3b : Travel in 26, new/used import 8% 11% 37% Light passenger NZ new Light passenger used import Light commercial NZ new 41% Light commercial used import Other 5 of 42

What are the trends in mobility? Light fleet travel 1 in New Zealand has increased faster than Gross Domestic Product (GDP) for most of this decade, but declined in 25 and 26, presumably as a reaction to the increase in the price of oil. 38 Figure 1.4 : Light Fleet total travel 36 Billion Vehicle Km 34 32 3 21 22 23 24 25 26 Period Ownership per capita 2 of light vehicles has increased significantly this decade. The increase reflects a number of factors including the high value of the dollar, high employment and positive economic outlook (Figure 1.8a shows some international comparisons of ownership rates). 75 Figure 1.5 : Light Fleet ownership per 1 population Vehicles per 1 population 7 65 6 21 22 23 24 25 26 Period 1 Travel has been estimated using the odometer readings from the vehicle inspection (WoF, CoF) system. 2 Population data obtained from the Statistics New Zealand website (www.stats.govt.nz). Estimates up to 25 were obtained from http://www.stats.govt.nz/products-and-services/inforeleases/nat-pop-est-info-releases.htm Projections after 25 were obtained from http://www.stats.govt.nz/products-and-services/inforeleases/nat-pop-proj-info-releases.htm, using the base year of 24. 6 of 42

The increased ownership rate has been accompanied by increased travel per capita, presumably tailing off in response to the fuel price surge. 1 Figure 1.6 : Light Fleet travel per capita 9 Annual Km 8 7 21 22 23 24 25 26 Period The very high (and growing) level of vehicle ownership appears to be accompanied by a saturation effect - the amount of travel per light vehicle has declined. 13,5 Figure 1.7 : Light Fleet average annual travel per vehicle 13, Annual Km per vehicle 12,5 12, 11,5 11, 21 22 23 24 25 26 Period 7 of 42

How does New Zealand s level of motorisation compare internationally? The New Zealand data in Figure 1.8a is based on all vehicles, not just light vehicles, to enable the New Zealand fleet to be compared with its international counterparts 3. This is to sidestep issues with jurisdictions such as the United States of America while United States car ownership figures per capita seem modest, it is because the United States SUV fleet is registered as trucks. Figure 1.8a : Vehicles per 1 population, 22 USA (*) LIECHTENSTEIN NEW ZEALAND LUXEMBOURG A NDORRA ITALY ICELAND CA NA DA PORTUGA L GERMANY AUSTRALIA SWITZERLAND AUSTRIA MA LTA FRANCE BELGIUM 2 3 4 5 6 7 8 How does the age of the New Zealand fleet compare internationally? This comparison has been confined to countries with high levels of motorisation, and with cultural similarity to New Zealand. The United Kingdom has not been included as its motorisation level is comparatively low. NZ 25 Figure 1.8b : Average fleet ages NZ 22 Australia 25 Australia 22 Canada 25 USA 26 Cars USA 22 Cars USA 26 Trucks USA 22 Trucks 4 8 12 Average vehicle Age in Years NOTE the United States vehicle ages are MEDIANS they are lower than United States averages would have been, if they had been available. See Appendix B for additional detail. 3 Data sourced from UNECE passenger car numbers 25 http://www.unece.org/stats/trends25/transport.htm 8 of 42

Light petrol fleet fuel economy The economy of the light petrol fleet has been established by comparing light petrol fleet travel with petrol deliveries, less estimated other uses of petrol. The fuel that has been removed from the calculation is: fuel used on-road by other parts of the fleet (motorcycles, heavy goods and buses) which is estimated as.97% of petrol deliveries fuel used off road (boats and jet skis, lawnmowers, circuit racing, rallying, speedway, motocross and other off-road motorcycling and agricultural quad bikes) which is estimated as 4.9% - 7.5% of petrol deliveries the bars on the chart show the petrol economy estimates based on the minimum non-light fleet estimate (5.9% of petrol) and maximum non-light fleet estimate (8.5% of petrol) The resulting rates are indicative of what happens on New Zealand roads in New Zealand driving conditions. These values are higher than the vehicle fuel test cycle values shown in Section 8, which are based on European and Japanese laboratory test cycles. 11 Figure 1.9 : Light petrol fleet average fuel economy 21-26 Minimum and maximum estimates Litres per 1 km of travel 1 9 21 22 23 24 25 26 Year NOTE : The estimate for the final year is provisional. It is likely that the Ministry of Economic Development will revise the petrol delivery data for the final year, after the fuel data for the following year becomes available. This may result in the fuel economy estimate for the final year changing. 9 of 42

What proportion of vehicle emissions is the Light Fleet responsible for? Heavy fleet 18.3% Figure 1.1 : 26 C2 Emissions Motorcycle.4% Light commercial fleet 15.7% Light passenger fleet 65.7% Source : Vehicle Fleet Emissions Model 1 of 42

2. COMPOSITION OF THE LIGHT FLEET Used imported vehicles make up an increasing proportion of the light vehicle fleet. Their share has almost reached 5 percent. 3,5, 3,, Used imports Figure 2.1 : Light Fleet composition NZ New vehicles 2,5, Vehicles 2,, 1,5, 1,, 5, 2 21 22 23 24 25 26 Year 5% Figure 2.2 : Light Fleet used import percentage Percentage of vehicles 4% 3% 2% 2 21 22 23 24 25 26 Year 11 of 42

The used imported vehicles in the light passenger fleet are now doing more travel than the New Zealand new light passenger vehicles, even though they are older on average (see Figure 2.4, and see Figure 3.3 for a breakdown of travel by vehicle age). Figure 2.3 : Light Private Fleet travel 26 52% 48% Travel by light passenger NZ new Travel by light passenger used import Light Fleet Vehicle Age The average age of the vehicles in the light feet is old by international standards (see Figure 1.8b) and the average age of the used imported vehicles in the fleet is increasing. The New Zealand Frontal Impact Standard was introduced in 22 and had the effect of restricting used car imports to those vehicles manufactured during or after 1996 (and some older vehicles that met the standard). This reduced the typical age of used imports arriving in New Zealand earlier this decade, but the effect of this restriction has now largely worn off (see Figure 5.2). Figure 2.4 : Light Fleet average age 13 NZ New average age Used Import average age 12 Age in years 11 1 9 8 2 21 22 23 24 25 26 Period 12 of 42

The light vehicle fleet age mix includes a very significant number of used imports manufactured in the 199s. 2, Figure 2.5 : Light Fleet vehicle ages : Dec 26 Light Passenger NZ new Number of Vehicles 16, 12, 8, 4, Light Passenger Used Imports Light Commercial NZ new Light Commercial Used Imports -1968 197 1972 1974 1976 1978 198 1982 1984 1986 1988 199 1992 1994 1996 1998 2 22 24 26 Year of Manufacture The New Zealand and Australian light fleets The New Zealand light fleet age profile and that of Australia are significantly different. Australia does not import used vehicles to any great degree, so most vehicles in the Australian fleet have been there since new. The 1996 year of manufacture peak in the New Zealand fleet is a direct consequence of the frontal impact standard, which had the effect of restricting used car imports to those vehicles manufactured during or after 1996 (and some older vehicles that met the standard). Note: this graph is indicative only as the available published Australian data is actually Dec 24. It is presented here displaced forward in time by two years. The fundamental shape of the curve is valid even though it may change slightly when the data becomes available. Figure 2.5a : NZ and Australian light vehicle ages : Dec 26 1% NZ Australia 8% Number of Vehicles 6% 4% 2% % 1987 1988 1989 199 1991 1992 1993 1994 1995 Year of Manufacture 1996 1997 1998 1999 2 21 22 23 24 25 26 13 of 42

Figure 2.6 shows the relative numbers and ages of the vehicles in the light fleet in December 26. Used imported vehicles are typically seven or nine years old when they enter New Zealand, which is why the age structure is so different from the Australian age structure (see Figure 2.5a). 1,, 8, Figure 2.6 : Light Fleet composition Dec 26 Used New Vehicles 6, 4, 2, Pre 1985 1985-1989 199-1994 1995-1999 2-24 25-29 Period of Manufacture 14 of 42

There is a marked difference between the makeup of the light passenger and light commercial fleets. Light commercials are typically relatively young New Zealand-new vehicles, whereas the passenger fleet is more typically older used imports. 7, 6, Figure 2.7 : Light Private Fleet compostion Dec 26 Light Passenger NZ new Light Passenger Used Imports 5, Vehicles 4, 3, 2, 1, Pre 1985 1985-1989 199-1994 1995-1999 2-24 25-29 Period of Manufacture 8, 7, Figure 2.8 : Light Commercial Fleet compostion Dec 26 Light Commercial NZ new Light Commercial Used Imports 6, 5, Vehicles 4, 3, 2, 1, Pre 1985 1985-1989 199-1994 1995-1999 2-24 25-29 Period of Manufacture 15 of 42

3. VEHICLE TRAVEL AND AGE IN 26 The light fleet travel is dominated by used imported vehicles manufactured during the 199s. The breakdown of the light passenger fleet is illustrated below (Figure 3.1). 12 Figure 3.1 : Light private fleet travel in 26 Used import Light Passenger NZ New Light Passenger Millions of vehicle km 9 6 3 Pre 8 198-1984 1985-1989 199-1994 1995-1999 2-24 25-29 Period of Manufacture Light commercial travel shows a different pattern a far higher proportion of travel is done by recently purchased New Zealand-new vehicles: 2 Figure 3.2 : Light commercial fleet travel in 26 Used import Light Commercial NZ New Light Commercial Millions of vehicle km 15 1 5 Pre 8 198-1984 1985-1989 199-1994 1995-1999 2-24 25-29 Period of Manufacture 16 of 42

The light fleet as a whole is shown below (Figure 3.3). Figure 3.3 : Light Fleet travel in 26 12 Used Import Light Fleet NZ New Light Fleet Millions of vehicle km 9 6 3 Pre 8 198-1984 1985-1989 199-1994 1995-1999 2-24 25-29 Period of Manufacture Average light vehicle travel by vehicle age There is a clear relationship between vehicle age and travel older vehicles travel less. The light commercial fleet travels more per vehicle than the passenger fleet until vehicles reach the age of about 15 years. 3 Figure 3.4 Light Fleet average travel in 26, by vehicle age Light Passenger Light Commercial Annual Km per vehicle 2 1 1968 197 Light fleet 1972 1974 1976 1978 198 1982 1984 Year of Manufacture 1986 1988 199 1992 1994 1996 1998 2 22 24 17 of 42

4. LIGHT FLEET ENGINE CAPACITY TRENDS There has been a steady month-on-month increase in average engine capacity in the light fleet this decade. This graph shows the averages for the vehicles in the fleet as at January 2 through until December 26. Interestingly, the New Zealand-new component of the fleet has a significantly larger engine capacity than the used imported component. This is mainly due to Australian-made vehicles imported new into New Zealand. There was a slight tailing off in the trend in 26. 29 Figure 4.1a : Light fleet average engine capacity 27 25 Average CC 23 21 19 17 15 2 21 22 23 24 25 26 Fleet by year and month Light petrol fleet Used petrol light fleet NZ New petrol light fleet Light diesel fleet Used diesel light fleet NZ New diesel light fleet Light Fleet average The trends in diesel and petrol engine capacities are quite different. The capacity of the New Zealand-new petrol vehicles within the fleet shows the greatest level of increase and is still maintaining an upward trend. The average diesel engine is significantly larger than the average petrol engine, but growth has tailed off. 24 Figure 4.1b : Light Fleet average engine capacity All light fleet Used Import light fleet NZ New light fleet 22 Average Vehicle CC 2 18 2 21 22 23 24 25 26 Fleet Date 18 of 42

The mix of engine sizes in the light fleet has been changing. The smallest class of vehicles (under 135cc) has been steadily disappearing and there has been significant growth in the 16-1999cc and 2-2999cc classes. Figure 4.2a : Light Fleet engine size trend 3,, 2,5, 2,, Vehicles 1,5, 1,, 5, 2 21 22 23 24 25 26 < 135 135-1599 Period 16-1999 2-2999 3-3999 4+ The engine capacity sector showing the greatest rate of growth is the 3-3999cc class, but the number of these vehicles is relatively low. The 2-2999cc class has shown the most growth in terms of vehicle numbers. There has been little obvious reaction to the fuel price rises. Figure 4.2b : Light Fleet engine size trend, relative to Jan 2 16% Change 13% 1% 7% 2 21 22 23 24 25 26 < 135 135-1599 16-1999 2-2999 3-3999 4+ 19 of 42

Light fleet travel by engine capacity and age Smaller-engined vehicles do less annual travel than other vehicles, and vehicles with the largest engines travel more early in their life. Annual Km 4 3 2 1 1968 197 Figure 4.3a : Light Passenger average travel 26 < 135cc 135-1599cc 16-1999cc 2-2999cc 3cc+ 1972 1974 1976 1978 198 1982 1984 Year of Manufacture 1986 1988 199 1992 1994 1996 1998 2 22 24 The pattern for light commercials is similar to that for light passenger vehicles, although the amount of travel is far higher. Again, the vehicles with the largest engines do the most travel early in their life. Figure 4.3b : Light Commercial average travel 26 4 < 135cc 135-1599cc 16-1999cc 3 2-2999cc 3cc+ Annual Km 2 1 1968 197 1972 1974 1976 1978 198 1982 1984 Year of Manufacture 1986 1988 199 1992 1994 1996 1998 2 22 24 2 of 42

5. WHICH VEHICLES ARE ENTERING THE LIGHT FLEET? Used imports are entering the light fleet at a faster rate than New Zealand-new vehicles. There were many more used imports from 23 to 25, although the relative proportion dropped in 26. 3, 25, Figure 5.1 : Number of vehicles entering the Light Fleet Used Imports NZ New 2, Vehicles 15, 1, 5, 2 21 22 23 24 25 26 Year The average age of the used imported vehicles entering the fleet has been rising for the past five years (see Figures 5.2 and 5.3). 9 Figure 5.2 : Average age of used imports entering the Light Fleet 8 Average age 7 6 5 2 21 22 23 24 25 26 Year 21 of 42

Used Import Year of Manufacture Figure 5.3a shows the breakdown of the year of manufacture of the used imports first registered in New Zealand during 26. Figure 5.3a : 26 Used imports - Year of Manufacture 21 7% 22-26 9% Pre 1997 26% 2 6% 1999 13% 1998 14% 1997 25% Figure 5.3b shows the year of manufacture of vehicles that entered and left the New Zealand light fleet in 26. Virtually all of the new vehicles were manufactured in 26. The graph shows that more used vehicles manufactured in 1997 entered the fleet than any other age. This is likely to reflect the effects of the Frontal Impact Rule (which restricts the entry cars made before 1996, although vans, utes and 4WDs continue to be imported). It may also reflect the Japanese pattern of selling vehicles in their seventh and ninth years, which owners do to avoid paying a relatively large tax at their two yearly registration process known as the Shaken. It can also be seen that used vehicles leave the fleet slightly earlier than New Zealand-new vehicles. 1, 8, 6, Figure 5.3b : Light vehicles entering or leaving the fleet in 26 NZ New in NZ New out Used Imports in Used Imports out 4, Vehicles 2, -2, 198 1982 1984 1986 1988 199 1992 1994 1996 1998 2 22 24 26 Year of Manufacture 22 of 42

Figure 5.4 shows the average engine size of vehicles entering the fleet was increasing until 25 (Figure 4.1 showed the average of all the vehicles in the light fleet). 3 Figure 5.4 : Average engine size of vehicles entering the Light Fleet Petrol Diesel Average engine capacity (CC) 25 2 15 2 21 22 23 24 25 26 Year Used import versus New Zealand-new engine capacity mix The engine size mix of the used imports entering the fleet is different from that of New Zealandnew vehicles. There are relatively more smaller-engine used imported vehicles than New Zealandnew. Figure 5.5a : Engine size of used imports entering the Light Fleet 6 Number of vehicles 4 2 2 21 22 23 24 25 26 Year Used Import < 135 Used Import 135-1599 Used Import 16-1999 Used Import 2-2999 Used Import 3-3999 Used Import 4+ 23 of 42

Figure 5.5b : Engine size of NZ new vehicles entering the Light Fleet 6 Number of vehicles 4 2 2 21 22 23 24 25 26 Year NZ New < 135 NZ New 135-1599 NZ New 16-1999 NZ New 2-2999 NZ New 3-3999 NZ New 4+ 24 of 42

6. WHAT VEHICLES ARE LEAVING THE LIGHT FLEET? Until recently, there have been more New Zealand-new vehicles being scrapped than used imported vehicles. However, now that used imports make up half the light fleet, this is changing (see Figure 6.1). 15, Figure 6.1 : Vehicles scrapped from the Light Fleet Used Imports NZ New 125, 1, Vehicles 75, 5, 25, 2 21 22 23 24 25 26 Year Used imports are leaving the fleet at an average age of 16 years, whereas New Zealand-new vehicles are averaging 18 years old when they are scrapped (see Figure 6.2). 2 Figure 6.2 : Average age when scrapped from the light fleet NZ New scrappage age Used Import scrappage age 18 16 Age 14 12 1 2 21 22 23 24 25 26 Year Scrappage Curves The accompanying spreadsheet includes scrappage curves for 26. The curves show the percentage of vehicles of each age that were in the fleet at the start of January 26, but gone by the end of December 26. They are table 6.3. Although motorcycles have not been included in the light fleet, their scrappage curve is included. Their high scrappage rates early in their life probably reflects crash damage. 25 of 42

7. QUARTERLY FLEET REPORTS: WHAT VEHICLES ARE JOINING AND LEAVING THE LIGHT FLEET? The quarterly graphs combine several sets of information. They may look complicated but if you take a few moments to work out their structure, it will make interpretation easier. the green bars show vehicles entering the fleet the blue bars show vehicles leaving the fleet the filled bars show petrol vehicles the outlined bars show diesel vehicles For example: the green outlined bars in the 25-2999cc range show a significant number of diesels entering the fleet comparing these bars with all other green outlined bars shows that the 25-2999cc class is the dominant diesel engine size the solid blue bars for the 1-1249cc class are far longer than the associated solid green bars. This shows that the number of these vehicles leaving the fleet vastly exceeds new registrations in this size range The quarterly graphs below show several trends: Vehicle engine size growth The 1-1249cc class is reducing in number (more vehicles are exiting the fleet than entering) but the next class up (125-1499cc) is expanding. The same reduction is evident in the 15-1749cc and 2-2249cc classes, and in each case the next class up is expanding. Diesels There are substantial numbers of 25-2999cc diesels entering the fleet. Fuel price effect The reaction to high fuel prices in 26 appears to have resulted in a reduction in the number of large engined (3cc+) petrol vehicles purchased, rather than increased purchases of smaller engined vehicles. 26 of 42

CC 4+ 3-3999 25-2999 225-2499 2-2249 Figure 7Q1 : Vehicles entering and leaving the Light Fleet Jan-Mar 26 Petrol NZ New in Petrol Used in Diesel NZ New in Diesel Used in Petrol NZ New out Petrol Used out Diesel NZ New out Diesel Used out 175-1999 15-1749 125-1499 1-1249 1-999 5 1 15 2 Vehicles 4+ 3-3999 25-2999 225-2499 2-2249 Figure 7Q2 : Vehicles entering and leaving the Light Fleet Apr-Jun 26 Petrol NZ New in Petrol Used in Diesel NZ New in Diesel Used in Petrol NZ New out Petrol Used out Diesel NZ New out Diesel Used out CC 175-1999 15-1749 125-1499 1-1249 1-999 5 1 15 2 Vehicles 27 of 42

4+ 3-3999 25-2999 225-2499 2-2249 Figure 7Q3 : Vehicles entering and leaving the Light Fleet Jul-Sep 26 Petrol NZ New in Petrol Used in Diesel NZ New in Diesel Used in Petrol NZ New out Petrol Used out Diesel NZ New out Diesel Used out CC 175-1999 15-1749 125-1499 1-1249 1-999 5 1 15 2 Vehicles 4+ 3-3999 25-2999 225-2499 2-2249 Figure 7Q4 : Vehicles entering and leaving the Light Fleet Oct-Dec 26 Petrol NZ New in Petrol Used in Diesel NZ New in Diesel Used in Petrol NZ New out Petrol Used out Diesel NZ New out Diesel Used out CC 175-1999 15-1749 125-1499 1-1249 1-999 5 1 15 2 Vehicles 28 of 42

What trends are there in the engine sizes joining and leaving the fleet? The new and used imported vehicles that joined the fleet in 26 did not differ markedly in engine capacity, despite higher fuel prices. The vehicles entering the fleet have greater engine capacities than those leaving, and the fleet average continues to grow. Period 26 Q1 Diesel in 26 Q2 Diesel in 26 Q3 Diesel in 26 Q4 Diesel in 26 Q1 Diesel out 26 Q2 Diesel out 26 Q3 Diesel out 26 Q4 Diesel out Figure 7.1 Means : Average engine size of vehicle entering and leaving the fleet 26 Q1 Petrol in 26 Q2 Petrol in 26 Q3 Petrol in 26 Q4 Petrol in 26 Q1 Petrol out 26 Q2 Petrol out 26 Q3 Petrol out 26 Q4 Petrol out 5 1 15 2 25 3 Average engine capacity (CC) 29 of 42

8. HOW MUCH OF THE LIGHT FLEET IS DIESEL POWERED AND HOW FUEL ECONOMIC IS THE LIGHT FLEET? The following table shows the fraction of the light fleet, passenger and commercial, that is diesel powered, and the percentage of light fleet travel that is diesel powered. Table 1 Diesel vehicles Diesel travel Light fleet overall 15% 19% Light passenger fleet 13% 17% Light commercial fleet 34% 34% Figure 8.1 : Light Fleet makeup by fuel type 26 5% 7% 7% Light Passenger petrol vehicles 81% Light Passenger diesel vehicles Light Commercial petrol vehicles Light Commercial diesel vehicles Figure 8.2 : Light Fleet travel by fuel type 26 11% 5% 9% 75% Light Passenger petrol travel Light Passenger diesel travel Light Commercial petrol travel Light Commercial diesel travel Page 3 of 42

The proportion of diesel vehicles in the fleet The diesel proportion of the light fleet has grown steadily, from 11.7% in 2 to 15% in 26. 15% Figure 8.3 : Diesel vehicles within the Light Fleet Diesel percentage 1% 5% % 2 21 22 23 24 25 26 Year Fuel economy values Vehicle importers have been supplying fuel consumption figures for New Zealand-new vehicles since March 25. They also provided values for most used Japanese imports manufactured since 2, and those imported into New Zealand since March 25. However the majority of used vehicles being imported were manufactured before 2, and do not have associated fuel consumption values. Figure 8.4 shows that a fuel test cycle value is now being recorded against almost all new vehicles entering New Zealand, but relatively few of the used vehicles, although this rate is increasing. 1% Figure 8.4 Percentage of vehicles with fuel test cycle values, by month first registered 75% 5% 25% % Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Month first registered in NZ Japanese New Japanese Used Other Countries New Other Countries Used All Page 31 of 42

Figure 8.5 shows the number of each of these groups of vehicles that were first registered each month. 3 Figure 8.5 : Monthly vehicle registrations 25 Number of vehicles 2 15 1 5 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Month first registered in NZ Japanese New Japanese Used Other Countries New Other Countries Used Page 32 of 42

Japanese and European fuel consumption test cycles The majority of new vehicles arriving in New Zealand, including those manufactured in Australia and Japan, are tested using the European drive cycle. The majority of the imported used vehicles are tested using the Japanese drive cycle. The results of the two tests are not directly comparable. Figures 8.6a and 8.6b show the percentage of vehicles first registered in New Zealand from March 25 that had test cycle values. The New vehicle - all tests curve totals the New vehicle - Japanese test and New vehicle - Euro test curves. The used and new vehicle curves cannot be summed they show the percentage of used and new vehicles respectively. 1% Figure 8.6a : Petrol vehicles that entered the fleet after March 25 : percentage with fuel test cycle values Percentage with a fuel value 75% 5% 25% New vehicles - Japanese test New vehicles - Euro test New vehicles - all tests Used vehicles - all tests % Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Month first licensed New diesel vehicles show a similar trend. Over 9% of new vehicles now have test cycle values (they are all European test cycle values), but almost none of the used imports have a test cycle value as they were manufactured before 2. The used and new vehicle curves cannot be summed they show the percentage of used and new vehicles respectively. 1% Figure 8.6b : Diesel vehicles that entered the fleet after March 25 : percentage with fuel test cycle values New vehicles - Euro test Used vehicles - All tests Percentage with a fuel value 75% 5% 25% % Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Month first licensed Page 33 of 42

Monthly fuel cycle trends Figures 8.7a and 8.7b show the fuel test cycle values of those vehicles that have them, by the month the vehicle was first registered in New Zealand. The data is split by petrol/diesel as the economy rates are different. The Japanese domestic test cycle results are NOT directly comparable with the European test cycle results. Used imported Japanese vehicles were subject to the Japanese test regime, and almost all new Japanese vehicles are subject to the European test cycle. The Ministry of Transport is developing a translation between the two test cycles. 12 Figure 8.7a : Average petrol consumption by test regime 11 Litres/1 km 1 9 8 7 6 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Different test, not directly comparable Month first registered in NZ Japanese test Euro test Japanese vehicles Euro test Non-Japanese vehicles Euro test all vehicles 12 Figure 8.7b : Average diesel consumption by test regime 11 Litres/1 km 1 9 8 7 6 Different Mar 5 test, not Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 directly comparable Month first registered in NZ Japanese test Euro test Japanese vehicles Euro test Non-Japanese vehicles Euro test all vehicles Page 34 of 42

Annual fuel cycle trends The annual trends in fuel efficiency (based on the vehicles for which we have values) are shown in Figures 8.8a and 8.8b. The Japanese test data is NOT directly comparable with the European test data, as the test method is different. 12 1 Figure 8.8a : average petrol consumption First registered in NZ in 25 First registered in NZ in 26 Litres/1 km 8 6 4 2 Japanese test Euro test Japanese vehicles Test regime and origin Euro test Non-Japanese vehicles 12 1 Figure 8.8b : average diesel consumption First registered in NZ in 25 First registered in NZ in 26 Litres/1 km 8 6 4 2 Japanese test Euro test Japanese vehicles Test regime and country Euro test Non-Japanese vehicles Page 35 of 42

9. WHAT IS THE AVERAGE VEHICLE ENGINE SIZE AND AGE OF THE VEHICLES IN USE? We have established the average vehicle age and engine capacity of the light fleet. But how does that compare with the average vehicle that is actually travelling on the road? The technique to establish this is to weight engine size and age by travel. Say the fleet consisted of a 1cc car that did 5km/year and a 2cc van that did 12,km/year. Then the average size of the fleet would be 15cc = (1+2)/2 The travel-weighted size would be (1x5 + 2x12) / (5+12) =176cc Similarly, say the fleet consisted of a ten year old vehicle doing 4km /year, and a four year old vehicle doing 1km/year. The average fleet age would be seven years = (4+1)/2 The average travel-weighted fleet age would be (1*4 + 4*1) / (4 + 1) =5.7 years Using this technique we learn that the average vehicle actually travelling is younger than the average vehicle in the fleet, and that it has a larger engine capacity then the average vehicle in the fleet. Figure 9.1 : Light Fleet travel weighted average vehicle age 13 Travel Weighted Age Average Age 12 Vehicle Age (years) 11 1 9 8 3 21 22 23 24 25 26 Year Figure 9.2 : Light Fleet travel weighted average engine size Travel Weighted CC Average CC Engine Size (cc) 25 2 15 21 22 23 24 25 26 Year Page 36 of 42

1. ECONOMIC INDICATORS 12 5 115 1 5 95 85 New & Used Car CPI (Dec 22=1) MarSep Mar Sep Mar Sep 9 92 95 97 2 Source: St atist ics NZ MarSep 5 7 New Used 2 15 1 5 Dec 9 Fuel price & CPI (Dec2=1) Petrol Diesel CPI Dec 94 Source: Statistics NZ Dec 98 Dec 2 Dec 6 18% 17% 16% 15% 14% 13% 12% Share of transport as % of total household expenditure 1988 1992 1996 2 24 Source: Statistics NZ 8% 6% 4% 2% % -2% Dec 95 Real GDP growth projection Jun 98 Dec Jun 3 Dec 5 Source: Statistics NZ & The Treasury Jun 8 qtrly annual Dec 1 45 3 15-15 -3-45 Net migration () 1951 1961 1971 1981 1991 21 211 Source: Statistics NZ 12 1 8 6 4 2 Unemployment Rate (%) Mar Mar Mar 86 89 92 Source: Statistics NZ Mar Mar Mar 95 98 1 Mar Mar 4 7 Statistics New Zealand source series Car prices New car prices CPIQ, SE9711, Used car prices CPIQ, SE9712 Fuel prices Household Transport expenditure GDP growth Migration Unemployment Petrol NRGQ SIHZ5, Diesel NRGQ SIHZ6 Prior to 1988, PCINFOS series was HEIA.SZEZZZZ6 but the HES only happens 3-yearly since 1998. Statistics produces some annual estimates but not published on INFOs search for Household Consumption Expenditure on the Statistics New Zealand website SNBA SKFAQ4 Total Permanent and Long Term (PLT) arrivals (EMIQ.S1CEZ) minus Total PLT departures (EMIQ.S2CEZ) HLFQ.S1F3S Page 37 of 42

Quarterly edition A brief quarterly trends analysis will also be published on the Ministry of Transport website. This will cover the vehicles entering and leaving the fleet that quarter (Figures 7Q1-7Q4 and 7.1 in the main report), and the fuel consumption of those vehicles (Figures 8.3-8.7). This report will also be solely web-published, with an accompanying data spreadsheet. The quarterly data for the previous year will be incorporated in the subsequent annual edition. Acknowledgements Kheang Chrun of Land Transport New Zealand, for advice on Motor Vehicle Register data Mark Walkington of the Ministry of Economic Development Stuart Badger, Lynley Povey, Sarah Wheaton, Wayne Jones, Joanne Leung, Iain McGlinchy, Tony Frost and David Eyre of the Ministry of Transport Page 38 of 42

APPENDIX A COMPARABILITY WITH OTHER PUBLISHED DATA The fleet statistics in this analysis are not directly comparable with other published data. The analysis has used a different method to categorise the vehicle fleet and to count the number of active vehicles. The information in this publication has been derived from a data extract from the New Zealand Motor Vehicle Register (MVR) which holds information on all active vehicles in New Zealand. Vehicle categorisation The vehicle categorisation is the one used in the Vehicle Fleet Emissions Model (VFEM) 4, rather than the vehicle split traditionally found in Transport Registry Centre (TRC) statistics, which are published annually by Land Transport New Zealand. The major difference from the TRC statistics is that, in this analysis, light vehicles (under 3.5 tonnes) have been categorised into light passenger vehicles and light commercial vehicles. In the TRC data, light commercial vehicles are included with trucks, but they may actually be cars, vans, utes or SUVs. The TRC categorisation is therefore not as useful when projecting the makeup of the fleet for the purposes of estimating fuel use or the level of emissions. The objective of the VFEM is to estimate the size and activity of the on-road fleet. For this reason,vehicles exempt from licensing (typically those used off-road) and vehicles with restoration licences are excluded from the analysis. Light Passenger Fleet MVR Vehicle types Passenger car/van Mass Up to 35 kg Light Commercial fleet Goods van/truck/utility Motor caravan Bus (*) Up to 35 kg Bus Bus Over 35 kg Heavy Motorcycles Miscellaneous (**) Passenger car/van Goods van/truck/utility Motor caravan Motorcycle ATV Moped Mobile machine Special purpose vehicle Tractor Agricultural machine Over 35 kg (*) Light buses have been included in the light fleet as they have the same fuel use and emissions characteristics 4 The VFEM is a computer model of the New Zealand vehicle fleet that is used to predict emissions. Much of the analysis in this report was carried out as part of work by the Ministry to improve the accuracy of the VFEM Page 39 of 42

(**) a small number of vehicles are classified as miscellaneous. Many of these vehicles are exempt from licensing and therefore not included in these analyses. The breakdown of vehicle categorisation by vehicle body type for the fleet as of December 26 was: Light passenger vehicle Light commercial vehicle Heavy goods vehicle Motorcycle Miscellaneous Total Bus Articulated truck 117 7596 7713 Cab and chassis only 13 132 145 Cab and chassis only 29 5 99 1 944 Convertible 2194 1 1 21942 Flat-deck truck 25624 24383 1 58 Hatchback 524198 3 1 52422 Heavy bus 3 3 453 486 Heavy van 56 13135 23 5678 18892 Light van 51476 119167 42 17145 Minibus 13 121 15 1 114 Mobile machine 1 24 6975 7 Motorcycle 98 18548 18646 Other truck 2 2139 7 68718 124 91321 Saloon 125811 13 125824 Self-propelled caravan 4 7925 8 14931 2294 Service coach 2 23 879 12 934 Sports car 65311 65311 Station wagon 77785 4677 14 782586 Tractor 8457 8457 Unknown 4 4 Utility 9144 193149 637 2293 Total 2786 395511 914 123999 18548 16638 3361771 Page 4 of 42

Number of active vehicles The number of potentially active vehicles is a critical factor in estimation of travel and the fuel use by the fleet. The traditional practice of the TRC has been to include vehicles in fleet statistics unless either their owner actively deregisters them, or the vehicle has not been re-licensed for 12 months. This approach is likely to overestimate the size of the active fleet as some vehicles will become inactive well within the 12 months. An alternative approach has therefore been taken in this analysis. In this case, as with the TRC practice, vehicles are included in these fleet statistics unless they are de-registered. However, we have also excluded those vehicles where their WoF/CoF renewal is more than six months overdue. This is considered more realistic 5. Vehicle travel estimates Vehicle travel estimates have been calculated on the basis of the difference between successive WoF/CoF odometer readings. The resulting fleet travel estimate has been validated against three large scale traffic counting exercises conducted by the former Land Transport Safety Authority (LTSA). 5 It is acknowledged that a small number of vehicles will continue to operate without a WOF or Registration. As the number of these vehicles is unknown no attempt has been made to include these. However inclusion of vehicles in the active fleet until their WoF/CoF is six months overdue appears to compensate. Page 41 of 42

APPENDIX B INTERNATIONAL FLEET AGE COMPARISON New Zealand light fleet Dec 22 12. years average age New Zealand light fleet Dec 25 12.2 years average age (source Motor Vehicle Register data) Australia 22 Australia March 26 1.5 years average age 1.1 years average age (source Australian Bureau of Statistics, Motor Vehicle Census) USA July 22 Cars 8.4 years MEDIAN age (lower than average age) All trucks 6.8 years Light Trucks 6.6 years USA July 26 Cars 9. years MEDIAN age (lower than average age) All trucks 6.8 years Light Trucks 6.6 years (source R L Polk & Co and GreenCarCongress - Light trucks have a GVW of 1-3 tons, Trucks have a GVW of 1-8 tons) Canada 25 Under 4.5 tonnes 8.3 years average age 4.5-14.9 tonnes 11.4 years 15+ tonnes 9.4 years Entire fleet 8.4 years (source computation based on the Canadian Annual Vehicle Survey 25 Tables 2.1, 2.2 and 2.3. Vehicles in the category Earlier than 1987 have been assigned a year of manufacture of 1982 for computational purposes. The average is somewhat sensitive to this assumption assuming pre-1987 vehicles have been in the fleet for 23.5 years produces an overall average of 8.4 years, and using 25.5 years produces a fleet average of 8.5 years) Page 42 of 42