Everyone knows that thanks to state subsidies, the percentage of electric cars in Norway is the highest in the world, and as early as 2020, the share of new electric cars exceeded the share of cars with internal combustion engines. In 2022, Norway set a new record – 79.3% of cars sold were electric. But soon everything may change, writes Reuters.
According to the Norwegian Road Federation, in 2022, 79.3% of new cars in Norway were battery electric vehicles (BEVs). In 2021, there were only 65% of them. The number of plug-in hybrids – 8.5%, other hybrids – 5.4%, the share of new purely gasoline cars was only 3.9%, diesel cars – 2.9%.
The most popular model of 2022 is the Tesla Model Y, the second is the Volkswagen ID.4 and the third is the Skoda Enyaq.
The popularity of electric cars is due to tax incentives. But while they help reduce carbon emissions, the benefits cost the state 39.4 billion kroner ($4 billion) in lost revenue in 2022 alone. Therefore, the center-left coalition government seeks to limit benefits for high-end vehicles.
That is, if in 2022 with benefits the Porsche Turbo S cost the buyer at least 1.7 million Norwegian kroner (approximately $166 thousand), then with taxation, as proposed by the government, such a car should cost 2.1 million kroner (approximately $206 thousand). The difference is 20%.
A new weight-based car tax could have a negative impact on BEV sales, as electric vehicles are heavier than their fossil fuel equivalents. This is the opinion of the Norwegian Automobile Federation (NAF), which represents 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.
According to him, the government also failed to adequately address one of the main practical problems for electric car owners, which concerns charging stations and payment methods for their use.
“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 will allow users to pay at all charging stations without using multiple apps.
But the Norwegian government is pushing for a new policy on electric cars.
“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 emphasized, adding the government needs to focus its measures on other transport segments, including heavy goods vehicles.