Oslo, on January 3, electric vehicles accounted for nearly two-thirds of Norway's new sales in 2021, and Tesla was the highest-selling car brand overall as the country pursued a goal of being the first to halt sales of gasoline and diesel vehicles.
Norway, with a population of 5.4 million, has the highest proportion of electric vehicles in the world, while China, with a population of 1.4 billion, is by far the largest overall car market.
Oil-producing country Norway is encouraging a shift to zero-emission vehicles by exempting all-electric vehicles (BEVs) from taxes on the internal combustion engine (ICE).
This tax break is expected to help drive overall EV sales by as much as 80% in 2022, before the deadline to end sales of gasoline and diesel-powered vehicles by 2025.
Overall new sales in Norway increased by 25 percent in 2021 to a record 176,276 vehicles, of which 65 percent were pure electric vehicles. This market share is higher than 54% in 2020.
While small and wealthy Norway is seen as a key market for new BEV players, including China's NIO and Sweden's volvo motors (VOLCARb.ST) subsidiary Polestar.
Tesla (TSLA. o) 11.6% share of the entire Norwegian automotive market in 2021, making it the number one brand of the year for the first time, ahead of Germany's Volkswagen (VOWG_p.DE), which has a market share of 9.6%. The Road Federation (NRF) said on Monday.
The U.S. automaker reported quarterly deliveries on Sunday far outpacing Wall Street's expectations, overcoming the impact of a global chip shortage as it boosted production in China, which allowed its stock to rise to a one-month high on Monday. Read more
The Tesla Model 3 is Norway's most popular model of the year, ahead of the Toyota (7203.T) hybrid RAV4, the only car in the top 10 equipped with an internal combustion engine, as well as the electric ID of Volkswagen (VOWG_p.DE). 4 third place.
Industry representatives said they expect EV sales to grow to 80 percent of norway's total market by 2022, though supply chain issues could stop the trend.
"We believe next year we will have more than 80% of electric vehicles," said Christina Boo, head of the Norwegian Electric Vehicle Association.
"But there's a lot of uncertainty about that prediction, which depends on the transportation conundrum — many automakers have delivery issues," she added.
Thomas Ingenlath, CEO of Polestar, told O Media: "Norway is the country most open to electric vehicles, has the deepest understanding of driving electric vehicles, and is also the most welcoming to have alternatives. ”
Polestar's luxury sedan is the 10th most popular model in Norway in 2021 and will launch its Polestar 3 SUV in 2022.
"Launched this premium SUV ... It's definitely going to change the way people think about Polestar, so I have big expectations for moving the brand forward," Ingenlath said.
Chinese electric vehicle makers have been looking to boost exports to match Beijing's ambitions to build a world-class auto industry and compete with traditional car companies. Read more
NIO opened its first overseas showroom in 2021 in downtown Oslo to sell its ES8 sport utility vehicle and ET7 sedan as part of its global expansion plans.
It also plans charging and battery replacement stations.
"Our station change strategy will expand very strongly (in 2022)," said Marius Hayler, head of Nio Norway, adding that he expects about 75 percent of total car sales by 2022 to be electric.
Finance ministry estimates show that while tax exemptions help reduce greenhouse gas emissions, they cost the state 30 billion NORWEGIAN KRON ($3.41 billion) in revenue last year.
As a result, the ruling center-left coalition plans to gradually start taxing the most expensive all-electric vehicles starting in 2023, and taxes on gasoline, diesel and hybrid vehicles are also increasing this year. Read more
(1 DOLLAR = 8.8088 NORWEGIAN KRONE)