It’s soon game over for Volkswagen ICE vehicles in Norway. Norwegian VW importer Møller Mobility Group just confirmed the plan to wrap up any orders on ICE vehicles in the country by December 2023 – after that, the brand will only sell its electric models.
It’s no surprise that Norway is leading the world in EV adoption. EVs already account for more than 20% of all passenger vehicles in the country, and almost 84% of new vehicles sold. Counting plug-in hybrids, the figure rises to 90%, according to the Norwegian Road Federation. The Norwegian government also plans to ban all ICE vehicles from 2025 onward, the earliest of any country, so Volkswagen is beating them to the punch by a year.
Over the last 10 years, Volkswagen has imported more than 102,000 electric passenger cars into the country. The VW ID.4 is listed as the second best-selling car across all drive types in Norway, with 5,832 new registrations as of the end of September. The ID.3 takes eighth place with 2,615 units sold.
But the Tesla Model Y is the top-selling car in the country, dominating more than 20% of the market share with 15,452 units sold in the first half of this year. Almost one in four new passenger car registrations so far this year was Tesla Model Y. Back in 2012-2013, Tesla takes a lot of credit for sparking the country’s EV adoption with the Tesla Model S, with other car manufacturers quickly following their lead. For VW’s park, the country registered its first fully electric model from VW in 2013.
Norwegians have enjoyed considerable incentives in transitioning to electric vehicles. But the country has started rolling back on those perks, partly due to the huge growth in EV ownership but also to encourage fewer private cars on the road (even electric ones) in favor of walking, cycling, and public transport. As of this year, the country has implemented a 25% VAT on the purchase price from 500 000 Norwegian Kroner and over. The new VAT scheme is dynamic in that the more expensive the electric car, the higher the VAT fee it incurs.