But he said there was "frightening" future of declining oil reserves, and he expected New Zealand's vehicle fleet would make the transition to electric vehicles before long.
More than one company would be producing electric cars by 2010, he said.
Electric/petrol hybrids were already on the roads, and he expected a fundamental change to the country's vehicle fleet.
The expense of new electric cars would mean the transition would be difficult, and would take time.
There was a need to keep upgrading passenger transport.
But it was not possible to take away the freedom of private cars.
"We have to plan for people still using vehicles."