What is driving demand for electric vehicles in Norway

Norway is a global leader in the introduction of electric cars into its fleet. In 2019, sales of electric vehicles accounted for 42% of the total number of new cars sold, while in the US and EU, it was only 1-2%. We have translated articles in the magazine CleanTechnica and figured out why the small Nordic country of 5.35 million people manages to stimulate demand for electric cars.

The answer is simple: while other countries talk about how electric cars will help improve the environment, the Norwegian government offers real subsidies and benefits.

Here are some of them:

• no annual road tax;
• 50% discounts on ferry crossings for electric vehicles;
• 100% or 50% parking discounts for electric vehicles (municipalities decide whether to make parking free or charge);
• access to bus lanes; reduction of the tax on electric vehicles of legal entities to 40%;
• no taxes on purchases/imports;
• exemption from 25% VAT on purchases.

Various exemptions were also introduced until 2019:

• from 2000 to 2018, the tax on electric vehicles for legal entities was reduced by 50%;
• free municipal parking from 1999 to 2017;
• In 2016, municipalities were allowed to restrict access to bus lanes for electric cars, except for those carrying two or more passengers.

Unni Berge, Head of Public Affairs at the Norwegian Electric Vehicle Association, answered a few questions for CleanTechnica about supporting electric vehicles.