Electric Cars Surpass ICE Cars in Norway: Setting Historic Milestone

New Delhi: Norway has achieved a milestone in the automotive world by becoming the first country where electric cars outnumber petrol models. With electric vehicles (EVs) making up a significant portion of the car fleet, Norway is leading the charge toward a future dominated by clean transportation, setting an example for other countries worldwide.

As of 2023, of the 2.8 million private cars registered in Norway, 754,303 are fully electric, surpassing the 753,905 petrol cars on the road. Diesel cars, though still the most common type at nearly one million units, are seeing a steep decline in sales, indicating a rapid shift towards electrification. According to the Norwegian Road Federation (OFV), the electrification of the passenger car fleet is growing much quicker than expected. Oyvind Solberg Thorsen, OFV’s director, described this shift as “historic” and a milestone that few would have anticipated a decade ago. The projection is that by 2026, electric vehicles will outnumber diesel cars, marking another significant moment in the transition towards greener transport.

Norway’s achievement is even more remarkable when compared to global EV adoption rates. While EVs represent just 3.2 percent of the worldwide car fleet, Norway is a clear winner, with electric vehicles already making up a significant portion of its automotive landscape. This rapid progress is mainly driven by government policies and consumer incentives that encourage the purchase of electric vehicles. As a result, Norway is well on track to meet its ambitious goal of selling only zero-emission vehicles by 2025, which is ten years ahead of the European Union’s target.

Key Reasons for Norway’s Success

One of the key reasons behind Norway’s success in electrifying its car fleet is the range of government incentives that have made electric vehicles more affordable and attractive to consumers. The Norwegian government has offered generous tax rebates on EVs, making them more competitively priced compared to petrol and diesel cars, which are heavily taxed. It gave EVs a leverage and made it a popular choice among Norwegian drivers.

In addition to tax benefits, several other incentives have played a pivotal role in accelerating EV adoption. For instance, electric cars have enjoyed exemptions from inner-city tolls, free parking, and the ability to use bus and collective transport lanes. Although some of these incentives have been rolled back, the favourable policies have been enough to propel Norway to the forefront of electric vehicle adoption.

Christina Bu, head of the Norwegian Electric Vehicle Association, emphasised that the government needs to continue supporting the EV market to sustain its growth. She urged the authorities not to raise taxes on EVs and instead to increase the levies on fuel-based vehicles in the upcoming 2025 budget, set to be presented to parliament in October.

Norway’s Climate Commitments

Norway’s transition to electric vehicles is a central part of its strategy to reduce greenhouse gas emissions and meet its climate goals. The country aims to cut its emissions by 55 percent by 2030 that were at 1990 levels. Electric cars are a vital tool in this effort, particularly in Norway, where almost all electricity is generated from hydropower, making EVs an even more environmentally friendly choice.

In 2023, Norway saw a 4.7 percent reduction in emissions from the previous year. However, the overall decline in emissions since 1990 remains modest, at just 9.1 percent. While the transition to electric vehicles is an essential step towards reducing carbon output, it is clear that further action will be needed to meet Norway’s ambitious environmental targets.

Norway vs. Europe

Norway’s success story stands in sharp contrast to the challenges faced by other European countries in promoting electric vehicles. Across Europe, the adoption of electric cars has been slower, with many consumers opting for hybrid models instead. Electric vehicle sales in Europe have declined since the end of 2023, accounting for only 12.5 percent of new car registrations in 2024, according to the European Automobile Manufacturers’ Association (ACEA).

Despite these challenges, there is optimism that the share of EVs in the European market will rise significantly by 2025. Estimates suggest that EVs could account for 20 to 24 percent of new car registrations by then, as more countries adopt stricter emissions standards and provide incentives for cleaner transportation options.

However, some doubts remain about the European Union’s ability to achieve its goal of phasing out petrol and diesel vehicles by 2035. In neighbouring Sweden, for example, sales of new electric vehicles have decreased for the first time this year, likely due to the government’s decision to remove an EV purchase rebate. This example shows the importance of maintaining government support to ensure sustained growth in the electric vehicle market.

Conclusion

Norway’s achievement of surpassing petrol cars with electric models is a significant global milestone, demonstrating the power of government incentives and consumer interest in transitioning to cleaner, more sustainable transportation. With electric vehicles continuing to rise in popularity and Norway on track to have a car fleet dominated by EVs, the country is setting an example for the rest of the world in how to successfully promote and integrate electric vehicles into the market.
As countries worldwide strive to meet their climate commitments, Norway’s success could serve as a model for others to follow.

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