NORWAY: Busting The Myth Of The World’s Hottest Electric Car Market.

Norway’s cold weather makes the country one of the least suitable markets for electric cars since freezing temperatures tend to reduce an EV range by up to 40%. This fact alone makes Norway a less likely market for wide EV adoption. EVs high price tag, range limitations, slow charging time and limited second market makes them a niche product in many markets, said another way, EVs practical inferiority to internal combustion engine (ICE) cars has discouraged their adoption at a wide scale. To counter EVs inherent inferiority, the Norwegian government has introduced a host of market distorting – stick and carrot – initiatives to force EVs adoption:

EV Carrots:

• EVs are exempt from VAT and other taxes on car purchases and sales.
• Parking in public parking spaces is free.
• EVs can use most toll roads and several ferry connections free of charge.
• EVs are allowed to use bus and collective traffic lanes.
• The company car tax is 50 per cent lower on EVs, and the annual motor vehicle tax/road tax is also lower.
• Battery charging is free at a rapidly growing number of publicly funded charging stations.

ICE Sticks:

• 25% VAT.
• CO2 Tax.
• NOx Tax.
• Weight Tax.
• Exorbitant gasoline and diesel taxes.

As result of the above distortions, ICE cars cost more to purchase in Norway and are up to 75% more expensive to operate.

The irony is that Norway can afford all the largess in no small part because of its yuge oil revenues.