Norway pushes EVs to 79% of all new cars sold, but will policy change affect this?

10th May 2023 By: Irma Venter - Creamer Media Senior Deputy Editor

Norway pushes EVs to 79% of all new cars sold, but will policy change affect this?

Norway set a new record in 2022 when 79.3% of all new car sales were fully electric, up from 64.5% in 2021.

The top-ten sellers were all electric in the country with its five-million inhabitants and relatively small new-car market (at 174 000 units last year) with the Tesla Model Y in first place, followed by the Volkswagen ID.4 and the Skoda Enyaq.

In 2016, the Norwegian Parliament decided that all new cars sold by 2025 should be zero emission, meaning either fully electric or hydrogen powered.

The Norwegian Electric Vehicle Association is confident that Norway can achieve this goal, as EVs are the number one choice in urban areas, as well as rural areas.

EV sales in Norway have largely been boosted by a substantial package of government incentives.

The most significant was the exemption of purchase taxes, making battery EVs considerably more attractive and affordable than internal combustion engine vehicles. 

From this year, however, Norway has implemented a 25% VAT on a purchase price of 500 000 Norwegian Kroner or more. 

Additionally for all EVs, a new weight tax have come into play.

How has this affected new-car sales in Norway?

It may be too early to tell, but all-electric passenger car registrations increased by nearly 4% in April, to 83.2% of the market. In March, all-electric car sales made up 86.8% of the market.