Japan's car auction houses are bumping up prices, to match discounts being offered here for electric vehicles

People who buy an EV from next year will be eligible for a rebate of up to eight thousand-600 dollars.

Anyone buying a new petrol or diesel vehicle will have to pay more.

Motor Trade Association chief, Craig Pomare, says the organisation has been warning this would happen.

He says a person in New Zealand buying an EV just ends up paying more, because the rebates are getting soaked up elsewhere.