When $8,200 in Per Vehicle Incentives Vanish, Will Norway Still Lead the EV Revolution?

1 year ago by Eric Loveday 6

The Nissan LEAF is a Hot Seller in Norway

The Nissan LEAF is a Hot Seller in Norway

Incentives.  That’s why Norway leads the charge.

Mitsubishi i-MiEV Sells Well in Norway, Too.

Mitsubishi i-MiEV Sells Well in Norway, Too.

It’s estimated that, in Norway, incentives and subsidies total nearly $8,200 per plug-in vehicle.

Available incentives include an annual savings of up to $1,400 in road tolls, free parking worth $5,000 for some urban dwellers, reduced automotive ownership fees valued at roughly $400 and purchase incentives that vary based on the vehicle in question.  All told, these kickbacks saves consumers up to $8,200 on plug-in vehicles, but there seems to be a bit of an issue.

Few nations can sustain excessive subsidies for any length of time and Norway is no exception.  It’s argued that without subsidies, plug-in vehicles would not fare nearly as well in Norway and that the nation’s apparent love of electric vehicles will fade as subsidies slowly vanish.

Electric vehicles represented 3.0 percent of all automotive sales in Norway in February, whereas plug-in vehicles in the US only managed to capture 0.1 of the total automotive market in 2012.  It would seem illogical to conclude that electric vehicles in Norway can sustain such a high penetration point and feverish growth when most countries can’t even come within striking distance of that 3% mark.

Norway’s current incentive scheme expires in 2017, when it will be reviewed and possibly altered or cancelled completely.  It’s at that time when we’ll be able to see whether or not Norway’s love for the electric vehicle was unconditional or just driven by external forces (i.e. incentives, tax breaks and free parking).

“This is a good introductory offer,” says Norwegian Environment Minister Baard Vegar Solhjell. “It’s a way to spread ideas and it also creates a lot of interest among the car companies.”  But when the “introductory” offer disappears, will buyers vanish , too?

via Automotive News Europe

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6 responses to "When $8,200 in Per Vehicle Incentives Vanish, Will Norway Still Lead the EV Revolution?"

  1. David Murray says:

    Yes, but eventually the prices will fall of those vehicles to the point they can sell close to that price without subsidies. That is the whole point of the subsidies to begin with.. To help get the mass production up to a point where the cost can come down.

  2. alohart says:

    EV purchase incentives for residents of several U.S. states significantly exceed the incentives offered to residents of Norway, yet the percentage of EV’s sold in Norway far exceeds that in the U.S. So there must be something about EV’s other than incentives that attracts Norwegians despite the performance penalties of cold weather driving. I’m guessing that the relatively high wealth of Norwegians, the high price of gasoline relative to electricity, and the desire to reduce energy consumption and live a greener life in general which seems more prevalent in Scandinavian countries than in the U.S. all contribute to high Norwegian EV sales.

    1. paulfrance says:

      The incentives mentioned for Norway are PER YEAR, not at purchase. No other country in the world beats that.

  3. ClarksonCote says:

    It seems like a lot can happen between now and 2017. For example, if oil goes to $200/barrel, my guess is EV’s will be way more popular everywhere, incentives or not.

    1. Warren says:

      There are, likely, only two ways oil could go to $200/barrel by 2017. One is if consumers can be convinced to go back to borrowing like crack addicts. Two is if globalists lose the stable oil supply.

      The chances of one are vanishingly small. If two occurs, those who can afford a car will be looking for an armored SUV.

  4. GSP says:

    Don’t forget Norway’s biggest incentive for EV’s: no sales tax. This is huge. Sales tax can be 100% of purchase price and is much higher for high horsepower cars. Tesla’s Model S I well over €100,000 less expensive than an M5.

    GSP