Norwegians have almost stopped buying fossil-fuel-powered vehicles. By the end of 2024, about 96% of new passenger car registrations were battery electric vehicles with a few other alternative fuel cars in the mix. The country is also the first to have more EVs in the fleet than gasoline cars.
It looks likely that Norway will cruise toward the government’s aim to end ICE sales by 2025.
There are several factors that have led to this full-throttle adoption of EVs. The population of Norway in 5.5 million people, living standards and average income are high and it has a galactic sovereign wealth fund of U.S.$1 trillion to pay for things like infrastructure. The country has also benefitted from successive governments that have consistently supported substantial incentive packages that helped people make the transition.
Timeline of Norway’s EV purchasing incentives
1990-2022: exempt from purchase or import tax
1996-2021: exempt from annual road tax
1997-2017: exempt from toll road charges
1999-2017: free municipal parking
2000-2008: 25% reduced company car tax
2001-2022: exempt from 25% VAT on purchase
2005: can use bus lanes
2009-2017: 50% reduced company car tax. free ferries
2015: exempt from 25% VAT on leasing
2016: New rules allow local authorities to limit the access to only include EVs that carry one or more passengers
2017: Parliament sets zero-emissions cars target for 2025. People living in apartment buildings have the right to access chargers
2018: EVs paid up to 50% of the total amount on ferry fares for EV
2018-2021: Company car tax reduction reduced to 40%
2018-2022: Maximum 50% of the total amount on toll roads
2021: Reduced road tax
2022: Full tax private cars. Company car tax reduction reduced to 20%. Publicly procured cars must be ZEV
2023: Some purchase tax based on cars weight. 25% VAT on the purchase price from 500,000 kroner and over. Maximum 70% of the total amount on toll roads
2025: City buses must be ZEV
Incentive information collated by the Norwegian EV Association.
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