Tesla dominated Norway's growing EV industry in 2022 as four out of five new cars purchased in the country came from the automaker, according to a report by Reuters.
For the second year in a row, the EV giant outsold every other brand when it came to vehicle sales in Norway, capturing a 12.2% market share compared to Volkswagen's 11.6%.
GRUENHEIDE, GERMANY - MARCH 25: In this aerial view newly completed Tesla Model Y electric cars stand at the new Tesla Gigafactory electric car manufacturing plant on March 25, 2022 near Gruenheide, Germany. The new plant, officially called the Gigafactory Berlin-Brandenburg, officially opened on March 22 with an event with German Chancellor Olaf Scholz and Tesla CEO Elon Musk. The new plant is producing the Model Y as well as electric car batteries.
Hefty Subsidies
China has the largest automobile market worldwide, but Norway, with its 5.5 million residents, has the greatest percentage of electric vehicles in the world thanks to hefty subsidies, making it a test market for automakers introducing new models, as per Reuters.
According to the Norwegian Road Federation (OFV), the percentage of battery electric vehicle (BEV) sales increased from 2.9% a decade ago to 79.3% of all new cars in 2022 from 65% in 2021.
The Skoda Enyaq came in third place, followed by Volkswagen's electric ID.4 in second, and the Tesla Model Y in fourth.
Norway has exempted battery electric vehicles from levies placed on rivals using internal combustion engines in an effort to stop the sale of gasoline and diesel automobiles.
However, some experts in the sector argue that increased tariffs may prevent the nation from reaching its objective of being the first to ban the sale of gasoline and diesel vehicles by 2025.
Read also: Tesla Q4 2022: More than 405,000 EV Deliveries, New Record-Still Misses Wall Street Expectations
Tax System Based on Weight
Although tax exemptions reduce emissions, the finance ministry reported that in 2022 they cost the nation 39.4 billion crowns ($4.0 billion) in lost revenue.
An electric Porsche Turbo S cost at least 1.7 million Norwegian crowns (around $170,000) to purchase last year, but the price would have exceeded 2.1 million if it had been taxed similarly to its gasoline-powered counterpart, according to Reuters.
Since electric engine systems are heavier than their counterparts powered by fossil fuels, a new vehicle tax based on weight could also have a detrimental effect on the sale of BEVs, according to the Norwegian Automobile Federation (NAF), an interest group that represents automobile owners.
NAF representative Thor Egil Braadland told Reuters they are worried that sales would suffer because the government has suggested a new tax based on weight.
He added that the government has also fallen short in addressing one of the major logistical issues facing owners of electric vehicles, which is the cost of using charging stations.
According to Braadland, one needs 10 to 15 apps to be a well-equipped EV owner in Norway.
The "e-roaming" approach that NAF is promoting would allow customers to pay at all charging stations without the need for separate apps, as per Reuters' report.
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