With help from Tesla, nearly 80% of Norway’s new car sales are electric

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Tesla electrical automobiles are seen within the supplier’s showroom in Oslo, Norway March 28, 2019. Image taken March 28, 2019. REUTERS/Lefteris Karagiannopoulos/File Picture

  • 77.5% of latest automobiles offered in Sept had been pure electrics
  • Tesla took greater than 30% of Norway’s automobile market
  • Pending luxurious tax might cap sale of high-end fashions

OSLO, Oct 1 (Reuters) – Demand for Tesla Inc’s mid-sized fashions helped push up electrical automobile gross sales in Norway to almost 80% of complete automobile gross sales final month, knowledge confirmed on Friday.

The nation has been a world chief in switching to electrical automobiles and seeks to grow to be the primary to finish the sale of petrol and diesel engines by 2025.

Battery electrical automobiles made up 77.5% of all new automobiles in September, the Norwegian Highway Federation (OFV) stated, up from 61.5% a yr in the past.

Tesla Mannequin Y, a compact sports activities utility automobile, was the highest promoting automobile with 19.8% of the automobile market adopted by the corporate’s Mannequin 3 sedan with 12.3%. Skoda’s Enyaq was a distant third at 4.4%.

First unveiled by California-based Tesla in March 2019, the Mannequin Y was solely not too long ago made out there to European prospects.

By exempting absolutely electrical automobiles from taxes imposed on these counting on fossil fuels, oil-producing Norway has grow to be a frontrunner in ending using combustion engines, and in 2020 EVs outsold all different automobiles for the primary time.

Nevertheless, Norway’s zero-tax coverage may change if the centre-left winners of final month’s nationwide election go forward with plans to tax the costliest fashions.


The following authorities is anticipated to be headed by Labour’s Jonas Gahr Stoere, and shall be made up of events which have vowed to introduce 25% VAT on the fraction of the worth tag of a brand new automobile that exceeds 600,000 Norwegian crowns ($69,300).

Whereas Tesla’s Mannequin Y, costing lower than the tax threshold, could also be unaffected, the corporate’s high-end S and X fashions are priced at as much as 1.3 million crowns and will face substantial levies. Porsche, Audi and Mercedes-Benz would even be affected.

Labour says the tax will usher in further money to state coffers and is motivated by a way of equity.

The tax exemption for electrical automobile purchases was meant as a technique to introduce new know-how, and may’t final indefinitely, stated Skein Highway Hansen, a Labour tax coverage spokesman.

“It’s a subsidy. And… the costlier the automobile is, the larger the subsidy,” he stated.

“We’ve within the final couple of years obtained a variety of new fashions… there may be loads to select from for individuals who nonetheless need to purchase a automobile whereas there’s a VAT exemption,” Hansen added.

A tax on electrical luxurious automobiles could be ill-timed and finally gradual Norway’s electrification, stated Christina Bu who heads the Norwegian EV Affiliation, an curiosity group.

Even within the northernmost a part of the nation with freezing temperatures in winter and reindeer roaming the streets, electrical automobile gross sales have not too long ago been outselling these powered by petrol, diesel and hybrid engines, Bu stated.

“Now lastly the extra rural areas are beginning to purchase extra electrical automobiles and it isn’t the time now to take away the tax exemption as a result of we have to additionally get these areas with larger market shares,” she added.

($1 = 8.6543 Norwegian crowns)

Reporting by Victoria Klesty, modifying by Terje Solsvik and Susan Fenton


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