EVs made up more than half of car sales in Norway last year.
More than half of all cars sold in Norway are now electric, according to new data from the country’s Road Federation. In 2020, EVs made up 54 percent of all new car sales, a figure that jumps even higher if you include plug-in and hybrid vehicles as well. By way of comparison, EV sales in the USA last year accounted for just 2 percent of all sales, whilst in the UK it was 6.6 percent.
The statistics show “pure” petrol and diesel vehicles constituted just eight and nine percent of all cars sold in the country last year. Norway’s most popular cars include Audi’s e-tron, Volkswagen’s Golf, as well as Hyundai’s Konda, the Nissan Leaf and Tesla’s Model 3.
Norway’s EV boom has been in the works for several decades, and shows the power of a good incentive scheme to make radical change. The country is one of a number of European countries that took advantage of a domestic oil boom through the 20th century. North Sea Oil brought riches to several nations, each of which used their newly-found wealth in very different ways, with dramatically different outcomes.
In 1990, Norway began pushing profits from its oil reserves into a new sovereign wealth fund. That fund was used to make investments in a number of industries, and is now worth more than $1 trillion and is now the world's largest sovereign wealth fund. Norway has used its enormous bank balance to fund its domestic transition toward electric vehicles with very generous subsidies, including no purchase or import taxes, no road tax and either free or heavily discounted fees for toll roads, parking, ferries and company car tax. EV drivers are also entitled to use bus lanes and receive subsidies for scrapping older, fossil-fuel-powered vehicles.
For every carrot, there is also a stick, and Norway has increased the tax burden on gas-powered cars to encourage EV purchases. In one example, EV Norway explains that a standard VW Golf is taxed to the tune of €12,000 ($14,700) to make the e-Golf cheaper in a side-by-side comparison. Norway has used some of that cash to fund infrastructure investment, including building a fast charging station every 30 miles or so on the country’s main roads.
All of this means that it expects, by 2025, to be able to end sales of fossil fuel-powered cars completely.
Last year’s Norway's sovereign wealth fund's return on investment amounted to almost $34,000 for each of its 5.3 million citizens, and the overall value of the fund is now equivalent to about $207,000 for every man, woman and child. More...