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How Norway Accidentally Became the World Leader in Electric Vehicles
While just a few percent of vehicles sold globally are electric, 80% of those in Norway are
Electric vehicles are on the rise. Electric cars were less than 1% but total sales in 2016, but have risen to over 4% in 2020. Bloomberg New Energy Finance estimates that by 2040, electric vehicles (EVs) will represent the majority of new vehicles sold. Yet, in one unlikely Scandinavian country electric vehicles already dominate the market.
Norway has become the canary in the coal mine for electric vehicle adoption. In January, 80% of vehicles sold plugged in and over half were all-electric. Yet, Norway seems like an unlikely candidate to lead in this sector. Aside from being one of the world’s largest oil producers, Norway is a relatively cold (where electric cars lose some of their range) and lacks the population density of many other European countries.
Sales of electric vehicles are spurred by a laundry list of incentives designed to encourage adoption. This includes an exemption from the hefty 25% VAT, an exemption from the annual road tax, and access to bus lanes. Some incentives have been rolled back in previous years, but electric car owners still often see reduced fees from parking and toll roads.
