30 per cent of new cars registered in Norway are electric

One third of the new vehicles that buzz along the Norway roads are electric. That makes the Scandinavian country rank first in terms of registration and acquisition of electric-powered vehicles.

By March 2015, Norway had registered 8112 electric cars which represents a 40% increase compared to 5775 such vehicles purchased during the same period last year.

Why are so many Norwegians increasingly opting for electric cars (in comparison to the U.S. where one in a hundred new purchased cars is electrically powered)? The main reason is explain by the “bonuses”. “Norwegians pay probably the highest taxes in the world, but at the same time they receive huge benefits when purchasing electric cars. An electric vehicle is exempt from VAT, purchase tax – which in Norway, adds 50% to the cost of the vehicle; also exempt from road, ferry and tunnel tolls. In addition, these cars take advantage of free parking and freedom to run on the lanes designated for buses”.
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However, these bonuses which aim to encourage people to purchase and use electric vehicles will not last forever. In May, the Norwegian politicians agreed that owners of electric cars should pay half tolls as of 2018 and full tolls as of 2020. The VAT exemption will be replaced by a type of subsidy which, over time, will in turn be withdrawn. Regarding the free parking privilege as well as the use of bus lanes or the exemption from other local taxes, that will be up to local authorities.