Tesla In Pole Position In Norway's Race To EV Goal
Published on January 31, 2023
Four out of five new cars sold in Norway in 2022 were battery powered, led by Tesla, but 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 by 2025.
Elon Musk's electric-only Tesla Inc. sold more cars in Norway than any other brand for a second consecutive year, clinching a 12.2% share of the overall market ahead of Volkswagen with 11.6%, registration data showed.
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 auto makers launching models.
The share of battery electric vehicles (BEV) sold rose to 79.3% of all new cars in 2022 from 65% in 2021, up from 2.9% a decade ago, the Norwegian Road Federation (OFV) said.
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.
Seeking to end the sale of petrol and diesel cars, oil-producing Norway has until now exempt battery electric vehicles from taxes imposed on rivals using internal combustion engines.
But while tax exemptions help cut emissions, they cost the state 39.4 billion crowns ($4.0 billion) 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, but if it had been taxed like its petrol-fuelled equivalent, the price tag would have been above 2.1 million.
A new auto tax based on weight could also negatively impact the sale of BEVs as electric engine systems are heavier than their fossil-fueled 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.
($1 = 9.8437 Norwegian crowns)
(Reporting by Victoria Klesty, editing by Terje Solsvik and Barbara Lewis)
Last Updated on January 31, 2023
Great Deals on Used CarsView All Used Cars
- 64,000 km
- 65,000 km
- 85,000 km
- 70,123 km
- 49,000 km
- 83,000 km
- 55,000 km
- 75,000 km
- 41,489 km
- 1,18,054 km
-14716 second ago
12 hours ago
13 hours ago
17 hours ago
19 hours ago
This makes the S1 X+ Rs 30,000 cheaper than the S1 Air, priced at nearly 1.20 lakh
20 hours ago
Hero MotoCorp’s cumulative sales for November 2023 stood at 491,050 units, witnessing a 25.61 per cent increase year-on-year
4 days ago
The updated Tesla Model 3 gets the “Active Hood” feature to reduce pedestrian injuries in the event of a collision
15 days ago
A YouTuber from Vietnam recently shared videos and images of his fully functional Cybertruck replica made out of wood and caught the attention of Tesla co-founder and CEO, Elon Musk.
19 days ago
While company chief Elon Musk was unable to meet in person due to health reasons, he expressed his honour in having the Indian minister visit Tesla’s manufacturing unit
24 days ago
Lucid customers will gain access to over 15,000 Tesla Superchargers across North America.
1 month ago
The company revealed a substantial 60 per cent reduction in EV battery production compared to the previous quarter during an earnings call