Source: Bloomberg
Norway plans to phase out internal combustion engine vehicles by 2025, and it seems to be succeeding—in October, electric vehicles accounted for 94% of new car sales in the Norwegian market (almost twice as much as in China).
As Bloomberg notes, the transition from the era of internal combustion engines to electric vehicles occurred with extraordinary speed. Although Norway has long implemented incentives to encourage the purchase of electric vehicles (including tax exemptions, free roads, etc.), the introduction has particularly accelerated in recent years, given the availability of a larger range of electric vehicles. Currently, there are over 160 models of electric vehicles available in the Norwegian market (a decade ago there were 10), and Tesla has become the leader among the best-selling brands.
Norway’s progress contradicts trends in other countries: in Europe this year, sales of electric vehicles have fallen, while in the USA, manufacturers are concerned about the re-election of Donald Trump, which could stall the country’s progress towards zero-emission vehicles.
At the same time, Norway still faces certain issues: in rural areas, residents are hesitant to use electric cars due to uneven roads and the large distance to charging stations (overall, the country has installed over 29,000 public charging devices). Similarly, some car owners simply are not eager to part with their old cars.
According to OFV, the national road federation, the average age of gasoline-powered cars has increased to 19 years (compared to 16 in 2020), and the situation is the same with diesels. Despite all this, there are currently 1 million fewer gasoline cars on the roads in Norway than 20 years ago.
One of the key aspects of Norway’s successful transition to electric vehicles is that it is not mandatory. Gasoline and diesel cars will still be available for sale in 2025 and later—unlike the European Union’s plan to ban them by 2035.