Norway is poised to become the world’s first country where nearly all new cars sold are electric, as per a CNBC report.
In 2023, electric vehicles (EVs) accounted for 88.9% of the country’s total car sales, and in the first weeks of 2024, over 96% of new car purchases were electric, according to data from the Norwegian Public Roads Administration.
In comparison, EVs represented 8.1% of total car sales in the US in 2024. Meanwhile, in the UK, nearly 20% of new car registrations were for electric vehicles in the same year.
This achievement is the result of decades of consistent policy-making that encouraged EV adoption, despite Norway’s status as a leading exporter of oil and gas.
This development positions Norway as a leader in sustainable transportation and brings it closer to fulfilling its 2017 goal of phasing out gasoline and diesel cars from its new car market by 2025.
Rather than implementing bans, Norway’s strategy relied on economic incentives and infrastructure investment, making EVs an appealing choice for consumers.
What drove Norway’s EV transition?
Norway’s transformation into an EV-dominant market didn’t happen by chance. The government adopted a series of tax exemptions and financial perks to encourage the adoption of zero-emission vehicles.
EV buyers enjoy benefits like VAT exemptions, reduced road and parking taxes, and access to bus lanes.
Meanwhile, public charging infrastructure has been developed extensively, and many households can charge vehicles at home, reducing range anxiety.
These measures have led to a societal shift in attitudes towards electric cars. While new EV purchases dominate, around 28% of cars on Norwegian roads are fully electric, with this figure rising to over 40% in Oslo.
The success has influenced broader government goals, including transitioning city buses to full electric operations by 2025 and achieving 75% renewable heavy-duty vehicle use by 2030.
This shift aligns Norway with other international goals but stands out due to its earlier timeline.
For instance, the European Union plans to ban the sale of new carbon-emitting cars by 2035, and the UK has set a similar target for 2030.
Norway’s policies demonstrate that proactive incentives can drive change faster than outright bans.
Challenges in achieving a full EV transition
Despite its progress, Norway still faces challenges in eliminating internal combustion engine (ICE) vehicles entirely.
While new car sales are nearly 100% electric, a significant proportion of older petrol and diesel vehicles remain on the roads. These will likely take years to phase out.
Another obstacle is maintaining public enthusiasm for EVs as incentives are gradually reduced.
As Norway approaches its ambitious target, discussions are underway to scale back some financial perks, potentially testing the market’s ability to sustain EV adoption without heavy government support.
There are also lessons for other countries. Unlike nations imposing mandatory bans on ICE vehicles, Norway focused on making EVs economically viable and convenient.
This approach may not be universally replicable, especially in regions without Norway’s wealth or infrastructure capabilities.
This transition highlights disparities in global EV readiness. While some countries have the infrastructure and resources to follow Norway’s lead, others face significant financial and logistical hurdles.
Norway’s achievement also challenges larger economies reliant on traditional automotive industries. The rapid transition to electric cars in Norway has showcased how consumer preferences can shift when governments actively support change.
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