Tesla in pole position in Norway's race to EV goal

January 03, 2022 (MLN): Four out of five new cars sold in Norway in 2022 were battery-powered, led by Tesla, but some in the industry say new taxes could thwart the country's goal of becoming the first to end the sale of petrol and diesel automobiles by 2025, as per Reuters reported. 

Elon Musk's electric-only Tesla Inc. (TSLA.O) sold more cars in Norway than any other brand for a second consecutive year, clinching a 12.2% share of the overall market ahead of Volkswagen (VOWG_p.DE) with 11.6%, registration data showed.

While China is by far the biggest car market overall, Norway with its 5.5 million inhabitants, has achieved the world's highest proportion of electric vehicles with the help of generous subsidies, making it a proving ground for automakers launching models, it added. 

The share of battery electric vehicles (BEV) sold rose to 79.3% of all new cars in 2022 from 65% in 2021, up from 2.9% a decade ago, the Norwegian Road Federation (OFV) said.

The Tesla Model Y was the single most popular model of the year, ahead of Volkswagen's electric ID.4 in second place, and Skoda Enyaq in third.

Seeking to end the sale of petrol and diesel cars, oil-producing Norway has until now exempted battery electric vehicles from taxes imposed on rivals using internal combustion engines.

But while tax exemptions help cut emissions, they cost the state 39.4 billion crowns ($4.0 billion) in lost revenue in 2022, the finance ministry said, and the center-left coalition government is seeking to curb benefits for high-end vehicles.

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