Almost four out of five new cars sold in Norway last year were battery-powered, with Tesla the top-selling brand for the second year in a row, registration data showed on Monday.
Seeking to become the first nation to end the sale of petrol and diesel cars by 2025, oil-producing Norway has until now exempted battery-powered fully electric vehicles (BEV) from taxes imposed on rivals using internal combustion engines (ICE).
The share of new electric vehicles rose to 79.3% in 2022 from 65% in 2021 and from a mere 2.9% a decade ago, the Norwegian Road Federation (OFV) said.
Tesla had a 12.2% share of the overall car market in Norway, making it the number one brand for a second consecutive year, ahead of Volkswagen with 11.6%.
The Tesla Model Y was the single most popular model of the year, ahead of Volkswagen's electric ID.4 in second place, and Skoda Enyaq in third.
Norway starts taxing EVs this year. With four out of five new cars sold in Norway in 2022 being battery powered, some in the industry say new taxes could thwart the country's goal of becoming the first to end the sale of petrol and diesel automobiles.
While China is by far the biggest car market overall, Norway with its 5.5-million inhabitants, has achieved the world's highest proportion of electric vehicles with the help of generous subsidies, making it a proving ground for automakers launching models.
But while tax exemptions help cut emissions, they cost the state 39.4-billion crowns (R68bn) in lost revenue in 2022, the finance ministry said, and the centre-left coalition government is seeking to curb benefits for high-end vehicles.
Those who bought an electric Porsche Turbo S last year would have paid at least 1.7-million Norwegian crowns (R2.9m) but if it had been taxed like its petrol-fuelled equivalent, the price tag would have been above 2.1-million (R3.6m).
A new auto tax based on weight could also negatively affect the sale of BEVs as electric engine systems are heavier than their fossil-fuelled equivalents, said the Norwegian Automobile Federation (NAF), an interest group representing car owners.
“We are concerned that the sales will drop because the government has proposed a new tax based on weight,” NAF spokesperson Thor Egil Braadland said. The government has also failed to sufficiently address one of the main practical problems for electric car owners, which involves charging stations and how to pay for their use,” he said.
“You need 10-15 apps to be a well-prepared EV owner in Norway, and we know that many are delaying their purchase of an EV because of that,” Braadland said. NAF is pushing for an 'e-roaming' solution that would enable users to pay at all charging stations without needing multiple apps.
The government defended its policy for electric vehicles. “The electric car has become the new normal car for Norwegians, and that means we have to look into how we are using society's funds,” Labour's Johan Vasara, a state secretary at the Norwegian transport ministry, said.
“We are very confident that the electric car is here to stay,” Vasara said, adding the government needs to focus its measures on other transport segments, including heavy goods vehicles.
Friends of change
Tesla in top spot as Norwegian electric car sales near 80% in 2022
Norway aims to end petrol and diesel car sales by 2025 and its government starts taxing EVs this year
Almost four out of five new cars sold in Norway last year were battery-powered, with Tesla the top-selling brand for the second year in a row, registration data showed on Monday.
Seeking to become the first nation to end the sale of petrol and diesel cars by 2025, oil-producing Norway has until now exempted battery-powered fully electric vehicles (BEV) from taxes imposed on rivals using internal combustion engines (ICE).
The share of new electric vehicles rose to 79.3% in 2022 from 65% in 2021 and from a mere 2.9% a decade ago, the Norwegian Road Federation (OFV) said.
Tesla had a 12.2% share of the overall car market in Norway, making it the number one brand for a second consecutive year, ahead of Volkswagen with 11.6%.
The Tesla Model Y was the single most popular model of the year, ahead of Volkswagen's electric ID.4 in second place, and Skoda Enyaq in third.
Norway starts taxing EVs this year. With four out of five new cars sold in Norway in 2022 being battery powered, some in the industry say new taxes could thwart the country's goal of becoming the first to end the sale of petrol and diesel automobiles.
While China is by far the biggest car market overall, Norway with its 5.5-million inhabitants, has achieved the world's highest proportion of electric vehicles with the help of generous subsidies, making it a proving ground for automakers launching models.
But while tax exemptions help cut emissions, they cost the state 39.4-billion crowns (R68bn) in lost revenue in 2022, the finance ministry said, and the centre-left coalition government is seeking to curb benefits for high-end vehicles.
Those who bought an electric Porsche Turbo S last year would have paid at least 1.7-million Norwegian crowns (R2.9m) but if it had been taxed like its petrol-fuelled equivalent, the price tag would have been above 2.1-million (R3.6m).
A new auto tax based on weight could also negatively affect the sale of BEVs as electric engine systems are heavier than their fossil-fuelled equivalents, said the Norwegian Automobile Federation (NAF), an interest group representing car owners.
“We are concerned that the sales will drop because the government has proposed a new tax based on weight,” NAF spokesperson Thor Egil Braadland said. The government has also failed to sufficiently address one of the main practical problems for electric car owners, which involves charging stations and how to pay for their use,” he said.
“You need 10-15 apps to be a well-prepared EV owner in Norway, and we know that many are delaying their purchase of an EV because of that,” Braadland said. NAF is pushing for an 'e-roaming' solution that would enable users to pay at all charging stations without needing multiple apps.
The government defended its policy for electric vehicles. “The electric car has become the new normal car for Norwegians, and that means we have to look into how we are using society's funds,” Labour's Johan Vasara, a state secretary at the Norwegian transport ministry, said.
“We are very confident that the electric car is here to stay,” Vasara said, adding the government needs to focus its measures on other transport segments, including heavy goods vehicles.
READ MORE