Norway – the new entrant to the EV Country Readiness Index
By the latest EY’s Electric Vehicle Country Readiness Index, Norway is the new entrant to the Index at high second place.
The Index looks at the preparedness of the top 14 vehicle markets for the arrival of EVs (electric vehicle) based on supply, demand, and regulation. The top 5 countries are China, Norway, Sweden, Germany, and the UK.
Norway has a strong regulation on tax benefits for EVs and has introduced EV lanes and parking spaces. In 2021 EVs accounted for more than 70% of all new car registrations. Randy Miller, EY Global Advanced Manufacturing & Mobility Leader, says: “China, Norway, and the other Leaders listed in the Country Readiness Index have demonstrated that a strong mix of regulation to stimulate demand, combined with localized battery production and implementation of a robust infrastructure plan, are critical factors in helping countries successfully transition to EVs.”
What has Norway done to increase the number of EVs?
The Norwegian Parliament has decided on the national goal that all new cars sold by 2025 should be zero-emission (EVs or hybrid). By February 2022 there were more than 470.000 battery EVs registered.
The overall signal from the Parliament is that it should always be economically beneficial to choose zero and low-emission cars over high-emission cars. This is done by “the polluter pays principle” in the car tax system. Higher taxes for high emission cars and lower taxes for low and zero-emission cars. Introducing taxes on polluting cars can partly finance the goal of zero-emission cars without any loss in revenues. For example, a new VW Golf is around 22.000€ but with the CO2 tax, NOx tax, Weight tax, 25% VAT, and scrapping fee retail price is 34.076€, while a VW e-Golf cost around 33.000€ and the buyer only pays scrapping fee and the retail price is 33.286€. In public procurement from 2022, all governmental cars have to be EVs and from 2025 the same will apply to city buses.
Over the last few years, Work Supply has seen a big increase in demand from dealerships that are looking for mechanics and technicians with experience in EVs and hybrids with the knowledge of EV computer and electrical diagnostics, service, and maintenance.