How it was possible that electric cars achieved in Norway in 2020 a 54% market share of new cars sold.

Some weeks ago, articles such as the one of Reuters about electric vehicle (EV) sales in Norway gained a lot of attention. Based on that, I asked myself the questions how it was possible that EVs achieve in Norway in 2020 a 54% market share of new cars sold. See my answer in the following…

Yes, there are soft factors such as the nature-loving, environmentally friendly attitute of Norwegians. Also, this trend hasn’t developed over night but is the result of a long process of facilitating electric mobility. Certainly, this has been supported by an increasingly attractive offering of EV in recent years.

However, there is broad body of research that clearly identifies economic benefits at the major reason. To illustrate that with an example:
– the base import price for a Volkswagen e-Golf is around $36,000, compared to $24,000 for a regular Golf.
– however, after deducting various economic incentives (VAT, emission taxes, other fees, etc.) the electric version is nearly $1,000 less expensive
– further EV advantages such as lower maintenance cost come in addition

Obviously, in such a setting, people are happily ready to take in their purchasing decisions the more climate-friendly avenue.

However, this setting is far from being standard across the EU. This becomes very clear when considering that Norway, with a total no. of pass. cars being <1% of the EU total, accounts with its 2020 EV sales for around 15% of total EV sales in the EU.

Picture source: Reuters.com