Electric cars account for up to 65% of passenger car sales in Norway

In 2021, Norwegian motorists preferred electric cars more often than other passenger cars. They accounted for almost ⅔ of sales. The most popular cars were those of the American brand Tesla.

The choice of the Norwegians in favour of eco-cars is not accidental, as this Scandinavian country is seriously intending to become the first country where they will stop selling cars with internal combustion engines.

Simple maths

Norway has a population of around 5.4 million people and has the largest share of electric cars in the car market. At the same time, China, with a population of 1.4 billion, has the status of the largest car market in the world.

Norwegian authorities have called for a move towards zero-emission vehicles by exempting electric cars from taxation. The introduction of the tax preference could raise the share of electric cars to 80% as early as 2022. This is three years earlier than the deadline for cars with internal combustion engines.

At the end of 2021, total new car sales in Norway increased by a quarter to an absolute figure of 176276 units. Of these, 65% were electric cars. A year earlier, their market share was 54%.

Small in population but quite affluent in terms of citizens’ income, Norway is seen as one of the main markets for new brands supplying electric cars. These include Volvo, Nio (PRC).

Statistics on sales of electric cars

According to the Norwegian Road Federation, Tesla’s share of the Norwegian market in 2021 was more than 11%, making Musk’s company the year’s leader. It managed to overtake the previously leading Volkswagen.

Tesla recently reported quarterly deliveries that slightly exceeded Wall Street’s estimates. This is because the manufacturer managed to beat global chip shortages by increasing production in the PRC. As a result, the company’s shares hit a one-month high on Monday, January 3.

The Tesla Model 3 is in the highest demand in Norway. It has overtaken the Toyota RAV4 Hybrid and Electric ID4. Automotive market experts predict that the share of ecological cars will increase to 80% this year. At the same time, they stress that disruption in the supply chain could halt this growth.

What cars Norwegians choose

Polestar luxury sedan was one of the top 10 most popular models of 2021 in Norway. According to T. Ingelat, CEO of Polestar, Norway is traditionally considered the most open country for electric cars. Here they understand better than anyone else what electric driving means.

This year the Polestar 3 SUV will appear on the market of the Scandinavian country. As Ingelat explained, the sound of this premium car may change the way people look at Polestar vehicles which gives a lot of hope for the successful promotion of the brand.

Competitors from the People’s Republic of China are not far behind the Volvo’s in-house tuning studio. In 2021, Nio opened its luxury car showrooms in Oslo to sell ET7 sedans and ES8 SUVs as part of a global scaling strategy. According to Nio Norway head M. Heyler, there are plans to expand the switching station network in 2022. This is no coincidence, as up to 75% of all cars sold will be electric cars.

Benefits of electric cars

The introduction of tax preferences helped reduce greenhouse gas emissions, but cost the Norwegian state budget $3.41 billion in lost revenue in 2021. The centre-left in power therefore intends to start taxing the most expensive electric cars from 2023. Tax rates on hybrid and internal combustion cars will increase this year.