Norway, a European powerhouse in the realm of electric vehicles, has garnered the attention of automakers worldwide. Numerous European car manufacturers have chosen this northern nation as their entry point into the world of electric mobility. Norway's proximity to other markets that have otherwise restricted electric vehicle imports has contributed significantly to the influx of exciting electric cars into Europe. So influential is Norway that it's even prompting traditional manufacturers to pivot their well-established business strategies, including an unexpected shift by Volkswagen.
Volkswagen’s Exclusive Electric Focus in Norway
The local importer, Møller Mobility Group, has announced that by the end of this year, they will cease accepting orders for combustion-engine Volkswagen models. Starting next year, their exclusive focus will be on electrically powered vehicles. From Volkswagen’s perspective, it’s a logical move, given the current automotive landscape in Norway. Electric vehicles already comprise 20% of the country’s rolling stock, with nearly 84% of all car sales being vehicles devoid of traditional combustion engines.
When you include plug-in hybrid vehicles, this proportion climbs to 90%. Such data is directly provided by the Norwegian Automobile Federation. Moreover, the local government plans to implement an aggressive restriction. Starting in 2025, they will prohibit the sale of all combustion-engine vehicles. Volkswagen is preparing for this reality a year ahead of its competitors. Over the past decade, Volkswagen has imported over 102,000 electric vehicles into Norway, and the ID.4 model ranks among the most popular models, currently holding an impressive second place.
Tesla Dominates Norway, Volkswagen Secures a Top Ten Spot
It might come as a surprise, but the best-selling car in Norway is currently the Tesla Model Y, commanding a share of over 20%. The momentum for this feat was set ten years ago by Tesla’s first model, the Model S. Volkswagen’s models, on the other hand, have found a solid footing in the top ten. In addition to the ID.4, the smaller sibling, ID.3, has also gained popularity, consistently ranking in the latter half of the top ten list.
Norwegians benefit from widespread government support, although it has started to wane due to the substantial share of electric vehicle sales. The government is now making efforts to limit the number of private vehicles across all propulsion types. For vehicles priced over 500,000 Norwegian kroner (approximately 45.000 USD), a 25% tax has been imposed. Presently, the government is focusing its support on mass urban transportation, cycling, and walking as part of its initiative to reduce the number of private cars on the road.