Norway reaches historic milestone as electric vehicles outnumber petrol cars for the first time

Norway’s rapid transition to electric vehicles, a global first, shows the impact of policy incentives and ambitious climate goals, setting the pace for the rest of the world.

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Norway has made history by becoming the first country in the world where electric vehicles (EVs) outnumber gasoline-powered cars on the road. This significant achievement is a testament to the country’s rapid progress in electrifying its vehicle fleet and serves as a global model for clean transportation. Electric cars now make up 26.6 percent of all registered passenger vehicles in Norway, according to data from the Norwegian Road Information Council (OFV). This marks a critical milestone in the country’s journey toward eliminating fossil fuel vehicles.

There are now 754,303 registered EVs in Norway, surpassing the 753,905 gasoline-powered cars. Though diesel-powered vehicles remain the most numerous, with just under 1 million still on the road, their dominance is quickly eroding. The growing prevalence of electric cars signals that Norway is on track to achieve its ambitious goal of eliminating new fossil fuel car sales by 2025—ten years ahead of the European Union’s own target.

OFV Director Øyvind Solberg Thorsen described the achievement as “historic,” noting that just a decade ago, few people would have predicted that electric vehicles would rise to dominate Norway’s roads so quickly. “The electrification of the passenger car fleet is keeping a high pace, and Norway is making rapid strides towards becoming the first country in the world with a passenger car fleet dominated by electric cars,” Thorsen said.

Norway’s government has implemented a comprehensive suite of policies to encourage EV adoption, making it a global leader in the transition to zero-emission vehicles. These policies include generous tax rebates and incentives that make electric cars more affordable and competitive compared to gasoline, diesel, and hybrid vehicles. The government has also exempted EV owners from road tolls, provided free parking, and allowed access to bus lanes in many urban areas, further incentivizing the switch from fossil fuel-powered cars.

The nation’s electrification efforts come as part of its broader climate goals. Despite being Europe’s second-largest oil producer, Norway has set an aggressive target to ensure that all new cars sold by 2025 will be zero-emission vehicles, primarily electric cars. With hydrogen-powered vehicles making up only a small fraction of the market, EVs are the primary focus of the country’s strategy to reduce carbon emissions from road transportation.

Of Norway’s 2.8 million registered private vehicles, electric cars now account for 26.6 percent. In contrast, gasoline-powered vehicles make up 26.5 percent, while diesel-powered cars, though still the largest group, are steadily declining as EVs become more prevalent.

In August 2023, electric vehicles accounted for a staggering 94.3 percent of new car sales in Norway, setting a new record. Tesla’s Model Y was the top seller, cementing its place as a market leader in the country’s burgeoning EV market. According to the OFV, by the end of the decade, there could be as many as 3.1 million registered electric vehicles in Norway. This rapid growth has also led to predictions that by 2026, electric cars will outnumber diesel vehicles in the country.

While diesel cars still hold the majority, their decline is inevitable. As Thorsen explained, “The pace we are seeing in the replacement of the passenger car fleet now may indicate that in 2026 we will also have more electric cars than diesel cars.” This shift is expected to continue as consumers increasingly choose EVs over fossil fuel vehicles.

Norway’s success in promoting electric vehicles is unmatched across Europe. While Norway has reached the point where electric cars outnumber gasoline-powered vehicles, the rest of Europe is struggling to keep up. EVs make up only 12.5 percent of new car sales in Europe, a far cry from Norway’s 94.3 percent in August 2023.

This contrast highlights the challenges faced by other countries in adopting clean transportation at the same pace as Norway. Economic factors, tax policies, and varying levels of government support across the continent have slowed the adoption of electric vehicles elsewhere. Even though the European Union has set a goal to phase out new fossil fuel cars by 2035, Norway’s success shows that bolder action and stronger incentives are necessary to meet global climate targets.

According to the Paris climate agreement, zero-emission vehicles need to account for 40 percent of the global car and light truck fleet by 2030 to achieve the necessary reductions in carbon emissions. Researchers at the Massachusetts Institute of Technology’s Joint Program on the Science and Policy of Global Change projected that the global EV fleet will grow from just over 10 million today to 95-105 million by 2030. Norway’s rapid progress serves as a model for how aggressive government policies can drive this transition.

A major factor behind Norway’s success in promoting EVs is its well-crafted incentive program. The Norwegian government has offered generous subsidies, including tax exemptions that make electric cars much more affordable than their gasoline or diesel counterparts. EV owners also enjoy significant benefits, such as free access to toll roads, lower annual road taxes, and discounts on ferry fares. These policies have made owning an electric car both an environmentally friendly and economically smart choice.

Moreover, automakers like Tesla have played a key role in shaping consumer demand for EVs in Norway. The success of Tesla’s Model Y demonstrates that electric cars can offer both high performance and long-range capabilities, two critical factors for consumers in a country known for its mountainous terrain and harsh winters.

However, Thorsen cautioned that the future is not entirely predictable. “Economic fluctuations in relation to car taxes, prices, interest rates, and other factors affect new car sales—both for private individuals and companies. And tax changes have a big impact on which cars we choose,” he said. These economic uncertainties could influence the pace at which the remaining fossil fuel vehicles are replaced by electric ones.

Norway’s success in surpassing gasoline-powered cars with electric vehicles offers an important blueprint for other countries looking to meet their climate goals. The rapid growth of EVs in Norway shows that strong policy support and consumer incentives can make a real difference in reducing carbon emissions from transportation. However, the rest of the world must accelerate its own efforts to catch up with Norway’s remarkable achievements.

As Øyvind Solberg Thorsen put it, “This is historic. A milestone few saw coming 10 years ago. The electrification of the passenger car fleet is keeping a high pace, and Norway is making rapid strides towards becoming the first country in the world with a passenger car fleet dominated by electric cars.”

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