Victoria Klesty

OSLO (Reuters] – In 2021, nearly two thirds (or more) of Norway’s new automobile sales went to electric vehicles. Tesla (NASDAQ:), the number one selling brand of automobiles, is pursuing its goal to be the first nation that has stopped the sale of diesel and petrol cars.

Norway’s population of 5.4million has the most electric vehicles in the world. China is home to 1.4billion people and the largest car market overall.

Norway is an oil-producing country and has supported zero emission vehicles by exempting electric vehicle (BEVs), of the tax imposed on internal combustion engine (ICE (NYSE :)).).

This tax relief is anticipated to drive overall electric vehicle sales to as high at 80% by 2022. It will be well ahead of the deadline for ending petrol and diesel car sales in 2025.

Norway’s total new car sales increased by 25% to an all-time high of 176,276 vehicles in 2021. 65% of these cars were completely electric. This market share grew from 54% to 54% in 2020.

Although small in size, Norway’s affluent population is a potential market for BEV companies, such as Polestar, the Swedish Volvo Cars affiliate, and China’s Nio (NYSE.

Tesla held 11.6% of Norway’s total car market share in 2021. This made it the top brand on a year-to-year basis, ahead of Volkswagen (DE) at 9.6%.

For a related graphic on Norway new car sales, click: https://graphics.reuters.com/AUTOS-ELECTRIC/NORWAY/gdvzykqrgpw/chart.png

On Sunday, the U.S. automaker reported quarterly deliveries that were far higher than Wall Street estimates. This was due to global chip shortages and an increase in China production. The shares rose one month on Monday.

Norway’s single most-popular model, the Tesla Model 3 placed ahead of Toyota’s hybrid RAV4, and Volkswagen’s electrical ID.4, who were the other top-10 cars with internal combustion engines.

Representatives from the industry said that they expected EV sales in Norway to reach 80% by 2022. However, supply chain issues could slow down this growth.

Christina Bu from the Norwegian EV Association stated, “We believe that we will surpass 80% electric cars next Year.”

She said, “But it’s uncertain in that forecast and it depends on the shipping conundrum — many car producers face delivery problems.”

For a related graphic on Norway new car sales, click: https://graphics.reuters.com/AUTOS-ELECTRIC/NORWAY/myvmnbomjpr/chart.png

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According to Thomas Ingenlath, CEO of Polestar, Norway is “the country that is most open to EVs and has the best understanding about what it means to drive an EV” (Reuters).

Polestar’s luxurious sedan, the Polestar 10, was Norway’s most-loved car in 2021. It will also debut its Polestar 3 SUV by 2022.

Ingenlath stated that the launch of the premium SUV…will change how Polestar is perceived by the public so he has high expectations to move the brand forward.

Chinese electric vehicle manufacturers have sought to increase exports to meet Beijing’s goal to create a world-class automotive industry that can compete with established auto companies.

Nio, which opened its first showroom overseas in Oslo, Norway in 2021 with lavish displays, aimed to sell its ES8 sport utility vehicles and ET7 sedans.

This device also has plans for charging and battery swapping stations.

Marius Hayler of Nio Norway said that the swapping station strategy would be strengthened in 2022. He also stated that electric cars will account for 75% to 75% of total car sales by 2022.

Tax exemptions can help reduce greenhouse gas emissions, but they also cost the state $30 billion in Norwegian crowns (or $3.41 billion) last year. This is according to estimates by finance ministry.

Therefore, the centre-left government plans to slowly tax most of the more expensive BEVs beginning in 2023. Meanwhile, the taxes for petrol, diesel, and hybrids have risen this year.

($1 = 8.8088 Norwegian crowns)