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Electric Cars Dominate Norwegian Car Market in 2023 Despite Reduction in Government Support

In 2023, electric cars and fuel cell cars accounted for 82.4% of all newly sold cars. This is a larger share than in 2022, despite the fact that from January 2023 the Norwegian government reduced the support for the purchase of electric cars. Overall, however, the Norwegian car market fell by 27.2%.

Extreme advantages for electric cars and at the same time very high taxation of conventional cars in Norway ensured the rapid introduction of electric cars. Even so fast that the goal set years ago to stop selling cars with internal combustion engines from 2025 looks more than realistic.

In 2023, electric cars accounted for more than 4/5 of newly sold cars, namely 82.4%, according to statistics from the Norwegian Road Traffic Information Council. Year-on-year, the share of electric cars rose by 3.1%. In total, just under 127,000 cars were sold in Norway, which has a population of around 5.4 million, last year, 47,000 less than in 2022.

The decline in sales was partly due to the rise in interest rates, which made new cars more expensive overall and thus less affordable for people. However, a certain limitation of the support for electric cars, which Norway introduced from 2023, could also be reflected.

Across all cars sold, the average CO2 emissions were 18.4 grams per kilometer, 4 g/km higher than the year before, the statistics say. The share of plug-in hybrids decreased by a percentage to 8%, the share of so-called full hybrids remained the same at 6%, and finally, the share of non-hybrid cars with both diesel and gasoline engines decreased.

Norwegian customers of new cars are apparently not very supportive of the Swedish trade union fight against Tesla, which in Norway increased its market share from 12 to 20% year-on-year last year. In second place was Toyota with a 12.4% market share (an increase compared to the previous year’s 8%) and Volkswagen with 10.8 percent (a decrease compared to the previous year’s 11.6%). As for the models, the Tesla Model Y was at the top, followed by the Volkswagen ID.4 and the Skoda Enyaq.

How about that support? It does not take the form of a mere subsidy or tax credit, but is much broader – but from January 2023 there has been a fundamental limitation. Until the end of 2022, electric cars were completely exempt from 25% VAT, from January 2023, a tax of 25% must be paid on the part of the price of the car above the threshold of NOK 500,000 (1.09 million Czech crowns). Cheaper electric cars are still completely exempt.

Electric cars have also been exempted from purchase tax until the end of 2022; from January 2023, the same applies to cars with a conventional drive of NOK 12.50 (CZK 27.36) for each kilogram of weight over 500 kg. A two-ton car is therefore taxed at NOK 18,750 (CZK 41,000).

Electric cars also had access to bus lanes until 2016; since then, they are only allowed to ride in them if at least two people are sitting in the car. Until 2017, there were no tolls and free ferries, which is common due to the large number of fjords in Norway. Since 2018, the tax for both has been fifty percent, from 2023 the toll is 70% of the rate for regular cars.

Until 2017, electric cars also did not pay for parking in cities. Finally, from 2009-2017 electric cars registered to companies had half the tax, later the tax was reduced by 40% and from 2022 it is reduced by 20% compared to conventional cars.

2024-01-03 15:52:00
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