3 weeks ago
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Electric Cars
Norway has inched closer to getting rid of petrol and diesel-powered car sales altogether, with the latest data revealing close to 90 per cent of new vehicle sales in the country were electric.
According to data published by the Norwegian Road Traffic Information Council (OVF), of the 128,691 new passenger cars registered in the country last year, 114,400 — or approximately 89 per cent — were battery-powered vehicles.
It’s worth noting Norway’s new car market is significantly smaller when compared to other countries like Australia, where the 2024 combined sales of the Toyota RAV4 and Ford Ranger – the two most popular cars sold by volume in the domestic market last year – at 121,311 nearly outsold the entirety of the European country’s fleet.
Norway’s equivalent of VFACTS revealed that the top five of the best-selling cars by volume were battery-powered, with the Tesla Model Y ranking first at 16,858 – or approximately 13 per cent market share – reported as sold in 2024.
The Tesla Model 3 came in second at 7264, slightly outpacing the Volvo EX30 in third (7229), the Volkswagen ID.4 in fourth (7222) and the Toyota bZ4X in fifth (6007).
As a reference, petrol and diesel cars accounted for 0.8 and 2.3 per cent of new car sales in Norway respectively, outpaced by low-emission vehicles like traditional hybrids (5.3 per cent), plug-in hybrids (2.7 per cent) and electric vehicles (88.9 per cent).
According to the International Energy Association (IEA), Norway has “gradually introduced” incentives for low-emission vehicles since the 1990s, with the Northern European nation previously aiming to have 100 per cent of its new car fleet be electric by 2025.
While the data suggests the country hasn’t hit the intended targets, some key figures point to the importance of EV incentives as a key factor in the complete electrification of the country’s new car fleet.
“The figures and the increase in share show that the last few percentages to reach the 2025 target may be difficult to achieve,” Øyvind Solberg Thorsen, the Director of the Norwegian Road Traffic Information Council, said in a media statement.
“It sends a clear message to the government that it is absolutely crucial to maintain benefits for purchasing electric cars if the government and the Storting are to achieve the target they have set themselves,” Thorsen added.
Norway has imposed high taxes on petrol and diesel cars while excluding EVs from import fees and other levies to entice local customers to make the transition, as per the Norway EV Association.
Christina Bu, the head of the Norway EV Association, told global news outlet Reuters, the Federal government’s decision to remain consistent with the introduced laws meant it was much easier for residents to switch to EVs.
“Very often, we see in other countries that someone puts tax incentives or exemptions, and then they pull back again,” Bu said.
“Having incentives, rather than banning petrol and diesel cars was crucial too. That would [have] made people angry. People don't like being told what to do,” she added.
According to an analysis conducted by the Norwegian Automobile Federation (NAF) and published by NAF's official publication Motor, the industry body projects EVs will account for approximately 96 per cent of new cars in the country in 2025, while battery-powered cars are estimated to reach 99.6 per cent market share in 2030.
Broadly speaking, the European Union (EU) introduced a landmark 'Green Law' deal in 2023, where carmakers in Europe must reduce new car tailpipe emissions by 55 per cent in 2030, with a 100 per cent reduction by 2035, essentially prohibiting the sales of diesel and petrol-powered vehicles in the continent by the end of the decade.
However, some member countries like Italy have called on authorities to revise the legislation amid declining EV demand and increased competition from Chinese manufacturers and their budget-priced models.
As previously reported by Drive, Italy has urged the EU to review the law in 2025 as opposed to the planned date in 2026, as the Italian automotive industry “struggles to transition” to a fully electric fleet.
Domestically, various Australian states and territories have previously introduced EV incentives like rebates, free/discounted registration and stamp duty exemptions to entice local drivers to make the switch.
However, Victoria, Queensland, and New South Wales have since scrapped incentives, with some car makers calling for a national subsidy to be introduced.
At present, the Federal Government has rolled out financial support for electric vehicle uptake which includes investment in public charging infrastructure and Fringe Benefit Tax exemptions on certain novated leasing models.
Scott Maynard, Polestar Australia's managing director, previously said “It would be great to see the varying levels of support that are offered on a state base to be brought into a national policy.”
“It would be really good to see a national policy on how electric vehicles are incentivised, given either tax breaks, stamp duty breaks, or preferably LCT [Luxury Car Threshold] breaks.
“Just so that it's not the case where an EV bought across state lines can be at completely different prices at completely different times,” Maynard added.
While EV sales grew by 1.7 per cent in comparison to 2023, its growth is dwarfed in comparison to the 161 per cent, 93 per cent, and 230 per cent year-on-year increase the segment recorded in 2023, 2022 and 2021, respectively.
Ethan Cardinal graduated with a Journalism degree in 2020 from La Trobe University and has been working in the fashion industry as a freelance writer prior to joining Drive in 2023. Ethan greatly enjoys investigating and reporting on the cross sections between automotive, lifestyle and culture. Ethan relishes the opportunity to explore how deep cars are intertwined within different industries and how they could affect both casual readers and car enthusiasts.
