In Oslo, the shift to electric vehicles (EVs) is so profound that Svein Morten Bergh, a marketing manager at the city’s largest Volkswagen dealership, jokes about his fading memory of the last petrol car sale. “I really don’t remember that far back in history,” he quips, noting that the last sale occurred in 2023, after years of dwindling sales.
Norway’s transition to EVs is unrivaled, with market share soaring from under 25% to an impressive 97.6% in just over a decade. This remarkable achievement aligns with the Norwegian government’s mission to phase out petrol cars by 2025. “There is still some anxiety about EVs, but that’s just a few customers,” Bergh mentions. “Many people in Norway are now on their third or fourth electric car.”
Oslo’s streets, bustling with Teslas, Polestars, and VW ID7s, offer a glimpse of the future that the UK Labour Party aspires to achieve, aiming to end petrol car sales by 2030. In Britain, the acceptance of this future is growing; in March, more than half of surveyed drivers expressed a likelihood of purchasing an electric car next. Despite a 24% increase in EV sales last year, they still account for less than a quarter of all cars sold.
The UK government is pushing for faster adoption by imposing fines on carmakers that fail to elevate EV market share to 33% this year. While this strategy is intended to encourage investment in infrastructure and manufacturing, the Society of Motor Manufacturers and Traders warns of “unsustainable” discounts being forced upon carmakers.
Perks for EV Drivers
The story of Norway’s EV success intriguingly connects to the pop band A-ha, who in 1990 drove an electric Fiat Panda around Oslo to protest road tolls for non-polluting vehicles. The stunt led to the exemption of EVs from such tolls, setting a precedent for further benefits like free parking and bus lane access. Although many of these incentives have been withdrawn, Chris Heron, secretary-general of E-Mobility Europe, believes they were pivotal. “These nudges can be very effective, and they don’t cost much for the government,” he explains. Nottingham in the UK has followed Oslo’s example by allowing EVs in bus lanes.
Clear Signals
Heron emphasizes the importance of consistent government signals to encourage EV adoption. Norway’s strategy included a VAT exemption on EVs and increased taxes on petrol cars. Only now, with EVs widespread, is Norway starting to tax them. In contrast, Britain’s approach has been inconsistent. After setting a 2030 phaseout date for petrol cars, the government reduced EV subsidies the following year. Labour has since reintroduced subsidies and reinstated the 2030 ban, delayed by Rishi Sunak, but also proposed a 3p-per-mile tax on EVs starting in 2028. Heron cautions that this tax could harm consumer confidence, advising it be delayed until EVs are more mainstream.
Leading the Charge
Norway’s government has also facilitated EV charging accessibility. Unlike in Britain, where leaseholders may struggle to install chargers, Norwegian housing associations are required to allow installations, with government subsidies available. New residences must include chargers, and Oslo’s local government even provides a helpline for installation inquiries.
Norway’s advantages, such as inexpensive hydropower and robust public finances, undoubtedly ease the EV transition. However, following Norway’s lead offers benefits. When Norway set its 2025 petrol phaseout, the VW e-Golf’s range was a mere 118 miles, whereas the VW ID7 now claims up to 433 miles.
Christina Bu, secretary-general of the Norwegian EV Association, observes that with strong governmental policies, the UK’s transition could be smoother than Norway’s. She remarks, “The most surprising thing about this fast transformation has been the number of people, especially middle-aged men, coming up to me and saying: ‘I was never going to buy an electric car, and now I’ve changed my mind.’”
Original Story at www.thetimes.com