In a move to accelerate the adoption of battery electric heavy vehicles, the Government has extended the RUC (Road User Charge) exemption for such vehicles until 1 July 2027.

The exemption was previously set to end after 31 December 2025. The extended 18 month exemption period gives heavy electric vehicle owners and operators additional time to plan for the transition, while setting clear direction that all vehicles need to contribute to the costs of maintaining the road network.

The Ministry of Transport is developing an RUC structure for electric heavy vehicles and from 1 July 2027, owners of heavy electric vehicles will need to buy and hold a valid RUC distance licence.

Heavy electric vehicle operators have been exempt from paying RUC since 2017 while RUCs were introduced for light full-electric and plug-in hybrid vehicles (at a reduced rate) from April 1 2024.

Heavy vehicles are classed as those weighing over 3.5 tonnes (GVM), such as trucks and buses.

The exemption extension and the co-funding for approved vehicles through the Low Emission Heavy Vehicle Fund are the key incentives currently available for transport operators considering battery electric models.

The LEHVF provides grants of up to 25% of the purchase price of approved new low or zero-emissions heavy vehicle, or 25% of the cost to convert an existing ICE heavy vehicle to be powered by approved low-emissions technologies.

Heavy vehicles make up less than 5% of New Zealand’s vehicle fleet, but account for roughly a quarter of road transport emissions. High upfront costs and the unknown total cost of ownership are the main barriers to the private sector’s uptake of zero and low-emissions heavy vehicles.