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Sunday, Jan 05, 2025
Outside the box.
Norway Sets Benchmark in EV Adoption as Nearly 90% of New Cars Sold in 2024 Were Fully Electric
Norway's consistent policies and incentives make it a global leader in transitioning to electric vehicles
Norway continues to lead the global charge toward sustainable mobility, with battery electric vehicles (EVs) accounting for nearly 89% of all new cars sold in 2024.
This marks a significant rise from 82% in 2023 and positions the country to achieve its goal of selling only fully electric new cars by 2025, according to data from the Norwegian Road Federation (OFV).
Leading the Global EV Revolution
The top-selling brands in 2024 included Tesla, Volkswagen, and Toyota, with Chinese electric vehicles now making up about 10% of new car sales in Norway.
Fully electric vehicles have overtaken petrol-powered cars on Norwegian roads, accounting for 28.6% of all cars driven as of December 2024, compared to petrol cars' share of 28%.
"Norway will be the first country in the world to nearly erase petrol and diesel engine cars from the new car market," said Christina Bu, head of the Norwegian EV Association.
A Policy Success Story
Norway's success in EV adoption is attributed to its carrot-and-stick approach.
The country imposes high taxes on petrol and diesel cars while exempting EVs from import and value-added taxes, though some levies were reintroduced in 2023.
This long-term policy consistency has been maintained across successive governments, regardless of political leanings.
"Unlike other countries that often introduce and then retract tax incentives, Norway has ensured predictability for the long-term," Bu noted.
Furthermore, the absence of a domestic automaker lobby simplified the process of taxing traditional vehicles, said Ulf Tore Hekneby, head of Harald A.
Moeller, Norway's largest car importer.
The policy’s success also lies in incentivizing rather than banning internal combustion engine (ICE) vehicles, which could have provoked public resistance.
"People don’t like being told what to do," Bu explained.
Impact on Infrastructure and Industries
The rapid transition to EVs is driving changes across various sectors.
Fuel stations in Norway are increasingly replacing petrol pumps with fast electric chargers.
Circle K, Norway’s largest fuel retailer, plans to have as many EV charging stalls as fuel pumps within the next three years.
"In a few years, more than 50% of all cars in Norway will be electric," said Anders Kleve Svela, a senior manager at Circle K.
"We are scaling up our charging infrastructure to meet this demand."
Tourists unfamiliar with EVs remain among the primary buyers of petrol cars in Norway, especially through rental agencies.
However, the growing adoption of EVs is transforming consumer behavior.
While cold winters can make EV charging slower, drivers like Desire Andresen, a caregiver, appreciate the environmental benefits.
"I miss the speed of filling up a petrol car, but I’m more comfortable with an electric vehicle," she said.
Lessons for the World
Norway's experience offers valuable insights for other nations transitioning to EVs. "The big lesson is to put together a broad package of incentives and make it predictable for the long-term," said Deputy Transport Minister Cecilie Knibe Kroglund.
The European Union has set a 2035 deadline to ban sales of carbon dioxide-emitting cars, but Norway’s policies demonstrate how incentives, rather than outright bans, can drive consumer adoption.
With nearly 90% of new car sales already electric, Norway is a step ahead in reducing carbon emissions and reshaping the automotive landscape.
Despite the challenges, such as slower winter charging and the adaptation of industries to meet new demands, Norway remains a global leader in sustainable transport.
As the world watches, its policies and progress set a compelling benchmark for others to follow.
This marks a significant rise from 82% in 2023 and positions the country to achieve its goal of selling only fully electric new cars by 2025, according to data from the Norwegian Road Federation (OFV).
Leading the Global EV Revolution
The top-selling brands in 2024 included Tesla, Volkswagen, and Toyota, with Chinese electric vehicles now making up about 10% of new car sales in Norway.
Fully electric vehicles have overtaken petrol-powered cars on Norwegian roads, accounting for 28.6% of all cars driven as of December 2024, compared to petrol cars' share of 28%.
"Norway will be the first country in the world to nearly erase petrol and diesel engine cars from the new car market," said Christina Bu, head of the Norwegian EV Association.
A Policy Success Story
Norway's success in EV adoption is attributed to its carrot-and-stick approach.
The country imposes high taxes on petrol and diesel cars while exempting EVs from import and value-added taxes, though some levies were reintroduced in 2023.
This long-term policy consistency has been maintained across successive governments, regardless of political leanings.
"Unlike other countries that often introduce and then retract tax incentives, Norway has ensured predictability for the long-term," Bu noted.
Furthermore, the absence of a domestic automaker lobby simplified the process of taxing traditional vehicles, said Ulf Tore Hekneby, head of Harald A.
Moeller, Norway's largest car importer.
The policy’s success also lies in incentivizing rather than banning internal combustion engine (ICE) vehicles, which could have provoked public resistance.
"People don’t like being told what to do," Bu explained.
Impact on Infrastructure and Industries
The rapid transition to EVs is driving changes across various sectors.
Fuel stations in Norway are increasingly replacing petrol pumps with fast electric chargers.
Circle K, Norway’s largest fuel retailer, plans to have as many EV charging stalls as fuel pumps within the next three years.
"In a few years, more than 50% of all cars in Norway will be electric," said Anders Kleve Svela, a senior manager at Circle K.
"We are scaling up our charging infrastructure to meet this demand."
Tourists unfamiliar with EVs remain among the primary buyers of petrol cars in Norway, especially through rental agencies.
However, the growing adoption of EVs is transforming consumer behavior.
While cold winters can make EV charging slower, drivers like Desire Andresen, a caregiver, appreciate the environmental benefits.
"I miss the speed of filling up a petrol car, but I’m more comfortable with an electric vehicle," she said.
Lessons for the World
Norway's experience offers valuable insights for other nations transitioning to EVs. "The big lesson is to put together a broad package of incentives and make it predictable for the long-term," said Deputy Transport Minister Cecilie Knibe Kroglund.
The European Union has set a 2035 deadline to ban sales of carbon dioxide-emitting cars, but Norway’s policies demonstrate how incentives, rather than outright bans, can drive consumer adoption.
With nearly 90% of new car sales already electric, Norway is a step ahead in reducing carbon emissions and reshaping the automotive landscape.
Despite the challenges, such as slower winter charging and the adaptation of industries to meet new demands, Norway remains a global leader in sustainable transport.
As the world watches, its policies and progress set a compelling benchmark for others to follow.
