Electric car sales set new 94% record in Norway

While the rest of Europe reports discouraging figures, Norway continues to set new benchmarks in electric vehicle adoption. In August, more than 94 percent of all new passenger cars registered were electric, a new record for the world’s forerunner in the EV transition. “This looks very promising to reach 100% as of January,” reacted secretary general of the Norsk Elbilforening Christina Bu.

According to recent data from the Norwegian Road Traffic Information Council (OFV), electric cars accounted for exactly 94.3 percent of Norwegian vehicle registrations last month. This impressive figure marks a new world record, surpassing the previous high of 92 percent set in January.

The figures spark hope for electric car adoption, as most European countries report worrying declines or stalling trends. Germany faces a slump of almost 40% due to halted incentives, and in France, the August figures rose 2% slower than last year.

Sales surge after summer

Christina Bu, Secretary General of the Norwegian Electric Car Association, expressed optimism about the recent surge in Norwegian EV sales. “The boost in electric car sales after the summer is cause for optimism. This looks very promising for reaching 100 percent in January,” she said.

The data show that electric car sales in August were 13 percent higher than in the same month last year, while the number of fossil fuel cars sold dropped by a dramatic 65 percent. Norway aims to sell electric cars exclusively by 2025 and is on track to reach this target, which predates the EU’s objective by ten years.

Interestingly, unlike the corporate focus seen in many countries, Norway’s private market is leading the way, with electric cars capturing a 96.7 percent share in August. The commercial market reached a 90.7 percent share, a new record for the second consecutive month.

However, overall car sales in Norway remain relatively flat compared to last year, with a seven percent decline in total sales year-to-date, reflecting the broader trend of reduced vehicle purchases, which is also noticeable in the rest of Europe.

Policy changes drive leasing market shift

One significant factor contributing to the recent surge in EV sales is the Norwegian government’s introduction of new tax rules for leasing companies on July 1st. In its revised 2024 Budget, the Government has proposed changes to the value-added tax regulations for purchasing vehicles intended for leasing, car rental, and taxi services.

“This shows that policy works,” Bu noted. However, Norway’s success can be attributed to more than just favorable incentives. The country’s comprehensive approach includes a robust charging infrastructure, a strong cultural commitment to sustainability, and a widespread availability of electric models.

Looking at the distinctive car models in the sales charts, the Tesla Model Y is the absolute bestseller in Norway, having sold 2,107 units in August. The Volvo EX30 (932) took second place, followed by the VW ID.4 (584), Skoda Enyaq (582), and Toyota bz4X (526). Norway’s best-performing region is Vestland, the province in the East around Bergen. It reaches a sales penetration for EVs of 96.6%.