Battery Electric Vehicles accounted for 54% of the total cars sold in Norway in 2020 (was 42% in 2019).
If we include the hybrid vehicles, the share of electrified vehicles in 2020 was 83%.
Petrol and diesel cars, which had a combined market share of 71% in 2015, now have just 17%.
While Norway is Europe’s biggest oil and gas producer, it plans to become the first country to end the sale of petrol/diesel cars by 2025.
And to achieve this target, the country offers a wide range of incentives to buy electric cars.
Incentive 1: No tax or toll on electric vehicles—this makes an expensive electric vehicle cheaper than a less expensive petrol car.
E.g., before taxes, VW e-Golf 36kWh costs US$38,930, and VW Golf petrol 1.2L costs US$27,350.
But the petrol car incurs $8075 in registration tax, and VAT (25%) adds another $6840—the total price of the petrol car becomes $42,265, which is $3335 higher than VW e-Golf.
These are just the initial savings; consider no road tax and no toll, and you know it is a much better deal.
Incentive 2: Free municipal parking in cities.
The savings from toll charges, road tax, and parking mean running an electric vehicle is at least $4100 cheaper than petrol/diesel vehicles.
Incentive 3: You are allowed to drive in bus lanes.
Petrol and diesel cars accrue heavy fines if driven in the bus lanes, and so, free access to bus lanes means electric vehicles can help you reach your destination faster.
Incentive 4: Charging electric vehicles is free.
There are close to 20,000 charging stations in Norway, i.e., 35 charging stations per 10,000 people and the charging is free.
