Nissan New Zealand is facing a challenge launching the redesigned Leaf in 2019 few, if any, other official importers worldwide have to deal with.
Local website Motoring NZ reported private importers of used and parallel sourced new product seeking again to undermine any chance of the redesigned EV being a franchise dealer success had not diminished the distributor’s desire to try selling it.
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Nissan New Zealand managing director John Manley had acknowledged the hostile scenario facing the new model, recently signed off for official New Zealand sale in 2019, as potentially no better than for the original car.
New Zealand once had some of the world’s toughest auto trade barriers with all imports subjected to value-based licensing and high tariffs on non British Commonwealth completed cars, assembly kits and spare parts but the market was freed up in the mid to late 80s, leading to unlimited imports of used cars and a considerable number of parallel imported new vehicles.
Motoring NZ said the first Leaf was dropped in 2016 by the Auckland-based distributor after achieving just a handful of sales during a three year push.
Nissan NZ could not price the car to meet the threat from used importers, who were able to deliver used examples at much lower prices even after a series of price drops for the NZ-new product that ultimately left it costing NZ$40,000 – about double the price of a three year old ‘used import’.
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By GlobalDataIronically, the report added, the used import Leaf, generally sourced from Japan or the UK (NZ is right hand drive) has become such a success it was the country’s best-selling EV in 2017. Owners also benefit from factory funded servicing and support network for their ‘unofficial’ imports.
The report said NZ was thought to be the only country where this situation occurs; it is also one of the few places seeking to establish an EV following that does not offer government incentives to promote a shift to battery powered driving.
However, Manley has always said a lack of subsidies was not the reason why the first Leaf struggled in his market, the report noted.
“Our decision was not based on any action, or perceived lack of action, by the government,” he was quoted as saying in 2016 as Nissan NZ axed the model from its local line.
He would not be drawn into commenting specifically about whether he thought the scenario would be any different for the new model.
He also had no comment about whether or not head office in Japan recognised the unique situation that his operation faced and if it was prepared to provide any support to allow Nissan NZ to fight the imports on equal terms.
Instead, he has said “NNZ acknowledge that the sale of Leaf in our market is always compromised by the pricing of used units arriving in our country from markets in which EV receive purchase incentives”, Motoring NZ said. He added “the car is outstanding and we are determined to bring it to NZ”.
The car was not available to NZ until 2019 because of global demand.
Motoring NZ said at least one ex-Japan example of the new car had already reached NZ and there was every likelihood a significant population might be established even before official Nissan imports reach showrooms.
