Norway is the leading country in the electrification of transport
5% of new cars sold in Norway in September were EVs
Tesla has a 30% market share in the country
Norway has long been one of the leaders in terms of making the transition to electric mobility, with a 2025 goal for the abandon of the internal combustion engine.
In September, 80% of new cars sold in the country were electric vehicles and a large proportion of them were made by Tesla.
Indeed, the American company has enjoyed strong sales in Norway since its introduction and its market share has now reached more than 30% of the country’s entire car market.
Two of the three best selling cars in Norway are Teslas, the Model Y accounting for 19.8% of the cars sold, while the Model 3 makes up 12.3% of the sales. Rounding out the top 3 is the Skoda Enyaq, with only 4.4%.
One of the strategies used to promote electric vehicles was to exempt them from the sales tax imposed on internal combustion vehicles, thus making them more competitive, and often cheaper than gasoline or diesel-powered options.
The adoption rate of electric vehicles in Norway has been in constant progression over the last few years, but it might slow down due to a new policy that could be voted by the new government.
Indeed, the Labour party that was recently elected by Norwegians has promised to impose a tax on luxury vehicles that would consist of 25% of the portion of a car’s price that is over 600,000 Norwegian Crowns ($69,300 USD).
Thus, a Tesla model X that can cost up to 1.3 million crowns ($150,000) would see 700,000 crowns of its price tag taxed at 25%, adding 175,000 crowns ($20,220) to the total. It isn’t clear if the portion of the price under the 600,000 crowns mark would be exempt of tax because it is an electric vehicle.
The government justifies this proposal by saying it is a matter of fairness, but many EV advocates fear the effect this tax will have on the take rate of more expensive electric vehicles, especially in rural areas.
In addition, the new government suggested removing the tax exemption on green cars, because it was intended to promote the switch to electric vehicles, which is now almost finished.