With over 80% of new cars sold being pure EVs, Norway is miles ahead of the rest of the world as far as EV uptake goes. So how has this been achieved? What can the rest of us learn from what is being done right in Norway?
Why Norway makes Australia look bad.
Norway is a much small country than Australia, buying considerably less new cars and yet it makes Australia look bad. Australia sold 1,081,429 new cars in 2022 vs Norway’s 175,292.
With the eyes of the world watching and learning, Norway continues to lead the charge in EV adoption. In November 2021, 73.8% of new cars sold in Norway with 100% electric. Combined with plug-in hybrid cars, which make up 21.1% of new cars sold, the total of electric vehicles is almost 95%. These are not small numbers either with 175,292 new cars sold in Norway 2022. Which means 130,000 pure EVs sold, 37,000 plug-in hybrids sold and only 8,800 Petrol/ Diesel cars sold.
But what about Australia? Despite the increasing popularity of electric cars, EVs only represented 3.1 per cent of the total new-car market…. 3% of 1 million plus new vehicles sold is a lot (33,410 units). However Norway sold 3.9x times more EVs (in units), which is a huge difference, some 97,000 more new EVs than Australia for a tiny population of just over 5 million people. If Australia was to match the achieved 95% New car EV sales of Norway, we’d need to increase to 1,027,357 new EV sales a year (a 30x fold increase in sales).
Why do Norway and Australia compare?
There are two critically important areas to look at, EV incentive policies and EV Charging infrastructure (EV Chargers). To drive/own an EV one needs places to charge. Charging stations need to be in locations were people are, need to be and on the way there. Norway of all European countries had the closest people per sq km to Australia (Norway 15 and Australia 3.35). Distance between Charging Stations is a big issue and key area of focus for both countries. However Australia is a highly urbanised country with most the population on the east coast.
How does Norway compare with EV Charging Stations?
Since 2022 there have been several more Charging Stations added to both networks, however 2022 we have more accurate figures. Australia has one eighth the Charging Stations of Norway. According to statistics (2022), there are 24,100 Charging Stations in Norway vs Australia’s 3,000 Charging Stations. Since 2022 there have been several more Charging Stations added to both networks, however 2022 we have more accurate figures. Australia has one eighth the Charging Stations of Norway. If Australia was to have the same ratio of Charging Stations to Norway (by population) it would mean 120,000 EV Charging stations would be needed (40x fold increase in EV Chargers). Australia would need to build an additional 117,000 EV Chargers to catchup. However it should be noted Norway has the highest number of EV Charging stations in Europe per person.
How did Norway do it?
Norway went electric with a combination of New Car taxation policies, EV Charging infrastructure Policies and reduced tolls/ parking charges. Just over 10 years ago Norway matched Australia’s present New Car EV Sales with only 3% EV sold. Here’s how they became a success.
The Norwegian EV incentives:
- No purchase/import tax on EVs (1990-2022). From 2023 some purchase tax based on the cars’ weight on all new EVs.
- Exemption from 25% VAT on purchase (2001-2022). From 2023, Norway will implement a 25% VAT on the purchase price from 500 000 Norwegian Kroner ($73,000 AUD) and over
- No annual road tax (1996-2021). Reduced tax from 2021. Full tax from 2022.
- No charges on toll roads (1997- 2017).
- No charges on ferries (2009- 2017).
- Maximum 50% of the total amount on ferry fares for electric vehicles (2018)
- Maximum 50% of the total amount on toll roads (2018-2022). From 2023 70%
- Free municipal parking (1999- 2017)
- Access to bus lanes (2005-). New rules allow local authorities to limit the access to only include EVs that carry one or more passengers (2016-)
- 25% reduced company car tax (2000-2008). 50% reduced company car tax (2009-2017). Company car tax reduction reduced to 40% (2018-2021) and 20 percent from 2022.
- Exemption from 25% VAT on leasing (2015-)
- The Norwegian Parliament decided on a national goal that all new cars sold by 2025 should be zero-emission (electric or hydrogen) (2017).
- «Charging right» for people living in apartment buildings was established (2017-)
- Public procurement: From 2022 cars needs to be ZEV. From 2025 the same applies to city buses
Are you thinking about buying your first EV? Here are some helpful EV buying guides by JUCER.
Thinking of buying an EV? EV Charging basics Speed + Range. – JUCER
EV Chargers, what exactly is a Type 2 Portable Charger and how do I us – JUCER
EV Charging. Just got a KIA Niro? What you need to know. – JUCER
How Owning An EV In Australia Is More Affordable Than Ever! – JUCER