The New Zealand government has vowed to invest $6 (US $4.2) million dollars annually to subsidize and promote electric vehicle adoption, according to a report by the Australasian Fleet Management Association (AfMA) News.

The initiative will focus on encouraging business fleets to switch to electric powertrains, increasing the expected number of EVs on New Zealand roads from 2,000 up to 60,000 in five years, according to New Zealand Transport Minister Simon Bridges, as cited in the AfMA report.

The government’s initiative package includes extending Road User Charges exemption on light EVs until they make up 2% of the fleet, government and private sector bulk EV purchases, $1 million (US $696,000) annually to promote and inform via campaign to purchase EVs, allow EVs to access bus lanes on state highways and local roads, etc., according to the AfMA report

New Zealand has a target of 90% renewable electricity generation by 2025, and currently around 80% is generated from renewable sources, according to the AfMA report.