The government is extending the Road User Charge exemption for light electric vehicles to encourage uptake.
Electric vehicles are exempt from paying road user charges that normally apply to vehicles that do not pay for petrol at the pump.
The exemption will now go until the end of March 2024 as part of the government's Clean Car Package.
Minister of Transport Michael Wood said the action was part of its plan to tackle transport emissions.
"New Zealanders can save about $800 per year with this exemption, giving them another reason to make the switch to an electric vehicle. Given charging your electric vehicle at home off-peak is like buying petrol at around 40c/litre, there are huge savings to be made.
"The Clean Car Discount is also helping with the upfront cost of getting an electric vehicle, with Kiwis getting up to $8625 back in the hand."
Wood said it would "benefit those who brought an electric vehicle before the government's Clean Car Discount came into force".