Norway Extends Electric Car Incentives Until 2020

NOV 10 2016 BY MARK KANE 16

Norway’s plug-in electric car sales are second to none globally, often noting a monthly new vehicle market share of over 30%.  Meanwhile in other countries, EV sales are still considered decent if we exceed 1%.

20 Tesla Stations, 4 50 kW DCFC And 4 22 kW (AC) Points Give Norway The Title Of Having The Largest DCFC Station In The World

20 Tesla Stations, 4 50 kW DCFC And 4 22 kW (AC) Points Give Norway The Title Of Having The Largest DCFC Station In The World

A big part of this success via tax exemptions (25% VAT) for BEVs, which makes purchase a lot easier compared to conventional car. BEVs account for about 15% of new registrations so far this year.

According to media reports from Norway, tax exceptions could stay in force by 2020 (previous idea was to begin phase out at some point after 2017).

Climate Minister Vidar Helgesen (H) stated to Dagens Næringsliv on the policy, while adding some color on the sales related to Tesla:

“We should continue the current policy because it works, but the individual elements to be included for how long, can be discussed…But now we have a race until 2020 at this time. And 85 percent of the electrical cars are not Tesla”, says Helgesen, who drives a Volkswagen e-Golf.

With many new models and longer-range EVs on the market we should see many new sales record in the coming years.

20 years of BEVs support in Norway:

  • Final exemption sales tax (01.01.1996)
  • Exemption annual tax (01.01.1996)
  • Exemption road toll (01.06.1997)
  • EL registration plates (01.01.1999)
  • Exemption municipal parking (01.19.1999)
  • Reduced company taxation (01.01.2000, expanded in 2005 and 2009)
  • Zero VAT on purchase (01/07/2001)
  • Access to bus lanes (01.06.2005)
  • Free EV access to highway ferries (01.01.2009)
  • Climate agreement securing tax excemptions until 01.01.2018 (11.06.2012)
  • Zero VAT on leasing EVs or battery packs (01.07.2015)

source: VG

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16 Comments on "Norway Extends Electric Car Incentives Until 2020"

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how many total cars registered in norway and how many plug ins registered in norway?? anyone anyone? Fry?

126 800 plugins registered until November this year.

Passenger cars are a total of 2 591 000 in 2015.
There are also 426 000 delivery vans.

So they are soon reaching 5% of total fleet compared to passenger cars. Or 4,2% compared to all “cars”.

Soon it should lead to reduced use of petrol and diesel for cars in Norway. They have reached a plateau in use and it should start to go down considering the high levels of new EVs registered.

Total is 126,805 through the end of October 2016, not November

The graph shows the breakdown between BEVs and PHEVs

I forgot, and 2016 registrations through October is 141,684 (including used imports, just as the other totals):

So cum registrations (without cars out of service or deregistered) is 2,732,984

Therefore, in a few months Norway will indeed have 5% of all cars on the road with a plug.

Cumulative Norway has added about 55k passenger cars per year for the last few years. So if you want to be more accurate with the cum. fleet up until November then 2 591 000 + 46 000 = 2 637 000 would be a pretty fair estimate.


Why are you replying to me and just repeating what I posted? 😛

Or did you want to add the 5 cars? 😉 Maybe you missed the word “until”?

Not updated, but 01.01.16 a total of 69 100 BEV registered.

By 01.01.16 a total of 339 plug ins were registered.

Updqted BEV numbers for Norway here

Total 98.300 BEV

It’s not so much an “incentive” as it is a lack of a Sin Tax. The intent of this tax structure was never really to encourage the use of ZEVs in particular, but to promote vehicles that use less gas. Since ZEVs use zero gas, they get zero tax.

But yes, it’s certainly working great.

Since it’s based on weight, engine/motor power and emissions it’s hardly just for reducing gas.

The Tesla would pay a lot in that tax since it’s only low on emissions but heavy and powerful.

Pity nobody ever gets it nearly right when they write about the incentives in Norway. At 25% you’d think VAT was far and away the most important of the incentives. That isn’t the case at all. If you want to buy a fossil car in Norway, you will usually pay a much bigger one-time fee (in practice it works like any import duty, although technically it isn’t one). BEVs are exempted, and of late the fee has been approximately halved for plug-in hybrids – which is why BEV share has declined a lot while the total plug-in share continues to grow. Unlike VAT, the one-time fee does NOT depend on the price of the vehicle. It is calculated based on weight, and CO2 emissions OR engine displacement and maximum power. This leads to both big, heavy cars and very powerful cars of all sizes and weights become relatively more expensive in Norway. A Golf GTI costs about 2.5 times as much as an e-Golf, for example. Clearly if you add 25% VAT to the e-Golf it would still be half the price of the GTI. It isn’t quite clear yet when the one-time fee will again apply to BEVs. But… Read more »

Oh how I want to give this post a million up votes and pin it on the front page.

I am sure that the sales percentage of 30% would be even higher if Ford were to start selling the Mondeo and C Max plug in’s in Europe. After all they are sold in fairly large numbers in America.

Here is the current situation in the US: Auto manufacturer’s Oct 19, 2012 request to EPA for waiver from CARB: “It is highly unlikely that the required infrastructure and the level of consumer demand for ZEVs will be sufficient by MY2018 in either California or in the individual Section 177 States to support the ZEV sales requirements mandated by CARB. EPA should therefore deny, at the present time, California’s waiver request for the ZEV program for these model years. During the interim, Global Automakers and the Alliance believe that California and EPA, with full auto industry participation, should implement a review for the ZEV program similar to the mid-term review process adopted under the federal GHG and CAFE regulations for MYs2017 through 2025.” That’s a whole lot of gobbledy goop to say, “keep the traveling provision so we can only sell cars in California at the minimum number, and not sell any in the other CARB states.” ****** November 10, 2016, two days after the election of Trump, “Alliance of Automobile Manufacturers” request relief from California Air Resources Board (CARB) Zero Emission Vehicle (ZEV) mandates, U.S. government Environmental Protection Agency (EPA) requirements for Corporate Average Fuel Economy (CAFE), plus… Read more »