Friday, February 3, 2023
News Tesla is the Best-Selling Brand in Norway for the Second Consecutive Year

Tesla is the Best-Selling Brand in Norway for the Second Consecutive Year

The Tesla Model Y is still the best-selling vehicle in Norway, the country with the highest EV adoption rate in the world.

  • Norway is the country where EV adoption is the highest, reaching almost 80% of all new cars in 2022.

  • The Tesla Model Y is the best-selling vehicle in the country for the second time.

  • Taxing vehicles based on weight could slow the progression of EVs in Norway.

In the race towards the complete electrification of the automotive industry, Norway is far in the lead, and it continues to move towards its goal of ending the sales of new vehicles powered by combustion engines as soon as 2025.

Indeed, 79.3% of all new vehicles sold in Norway in 2022 were fully electric models, which is much higher than in any other country and a big progression from the 65% figure from 2021.

It is no surprise then that the best-selling vehicle in Norway is an EV, the Tesla Model Y. The premium compact SUV has now completed its second year at the top of the sales chart in this Scandinavian country, with a 12.2% market share.

The top three of the most popular EVs is completed by the Volkswagen ID.4, with an 11.6% market share, and the related Skoda Enyaq in third place.

This popularity of electric vehicles can be explained by the generous incentives financed by the Norwegian government.

Indeed, EVs have been exempt from the sales taxes imposed on gasoline and diesel-powered vehicles for many years now, which can make them significantly more affordable than comparable models that have combustion engines.

These incentives could be coming to an end, however. According to the country’s finance ministry, EV tax exemptions have cost the government 39,4 billion crowns (about $5,3 billion CAD) in 2022 alone and this loss is set to increase even further in the coming years as more and more buyers choose EVs.

In order to reduce this loss of revenue, the Norwegian government wants to remove the tax benefits given to buyers of luxury or performance EVs and it has proposed a new tax based on weight.

This is because vehicle taxes are usually spent to repair and maintain road infrastructures and heavier vehicles cause more damage to roads and bridges than lighter ones.

Since electric vehicles are usually much heavier than comparable gasoline or diesel-powered models, there is fear that this new tax could actually reverse the rate of EV adoption in the country if it comes into effect.

It is interesting to note that despite Norway being so much further along the path of electrification than other nations around the globe, its charging network is still quite convoluted, with drivers needing 10 to 15 apps on their phones to make sure they can use any charging station they encounter.

Source: Automotive News Europe

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