Why Norwegians Like BEVs

The Norwegians really like electrified vehicles, both full battery electric vehicles (BEVs) and plug-in hybrids (PHEVs).

According to InsideEVs.com, in October, BEVs accounted for 60.8% of the total passenger car market in Norway and PHEVs accounted for 18.3%.

For the year-to-date InsideEVs.com points out that BEVs have 51.8% of the market and PHEVs 20.1%, so this is not a monthly fluke. 

Volkswagen ID.3—the compact electric vehicle that is huge in Norway. (Image: VW)

The vehicle with the greatest sales in Norway? The Volkswagen ID.3, which had 2,475 registrations, or 19.1% of the market.

(Tesla? Just 74 Model 3s were registered.)

Why the demand for BEVs in Norway? According to LMC Automotive, tax policies have a tremendous effect. Zero-emission vehicles are exempt from an import/registration tax that can mean a savings of anywhere from €3,000 to €40,000 compared with an internal combustion engine vehicle.

What’s more, there is not the standard 25% value-added tax (VAT).

Is this interest in BEVs something that is going to pass?

This doesn’t seem likely anytime soon.

According to David Leah, senior analyst at LMC, “our baseline forecast is that, by 2025, virtually all new vehicle sales (registered for personal use) in Norway will be electrified. BEVs will account for the lion’s share, at around 90%, with hybrids making up most of the remainder.”

Look at this chart and notice the gray area diminishing to nearly nothing. Internal combustion engines in Norway don’t seem to have much in the way of a future. 

This chart from LMC Automotive shows how it anticipates sales of different propulsion systems in Norway. Things don’t look good for ICEs. (Image: LMC)