Otis Singleton
Electric vehicles are becoming increasingly popular worldwide, with more than 40 million in use globally as of 2023. In that year, electric vehicles accounted for almost 23% of new car registrations in Europe, and 22.7% of new car registrations in the US. However, Norway is leading the way when it comes to electric vehicle adoption, with 91% of new car sales in 2023 being electric. China is also a top adopter of electric vehicles, with 22% of passenger vehicles sold in 2022 being electric, and the country also leads in electric bus deployment.
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What You'll Learn
Norway's government incentives
Norway is a global leader in the adoption of electric vehicles (EVs). In 2022, eight out of ten passenger car sales in Norway were electric, with 150,000 sold in total. This is a remarkable feat, especially considering Norway's cold climate and challenging terrain, which would typically make it a less-than-ideal environment for EVs.
Norway's success in EV adoption is largely due to its government's incentives and policies, which have been in place since the 1990s. The Norwegian government has actively promoted EVs to fulfill the country's climate commitments and transition to zero-emission transport. Here are some of the key incentives that have contributed to Norway's success:
Tax Exemptions and Reductions
- Exemption from Value-Added Tax (VAT): EVs have been exempt from Norway's 25% VAT on purchase taxes, making them more affordable for consumers. This exemption was in place from 2001 until 2022, with a partial exemption of up to 500,000 Norwegian kroner continuing in 2023.
- No Purchase/Import Tax: From 1990 to 2022, EVs were exempt from the high purchase/import taxes applied to conventional cars. In 2023, a weight-based purchase tax was introduced for EVs, but it is still lower than the tax on traditional vehicles.
- No Annual Road Tax: From 1996 to 2021, EVs were exempt from annual road taxes. A reduced tax was implemented in 2021, followed by a full tax in 2022.
- No Toll Charges: From 1997 to 2017, EVs were exempt from toll charges on roads and ferries. From 2018 onwards, they were required to pay a maximum of 50% of the total toll charges.
- No Public Parking Fees: From 1999 to 2017, EVs were exempt from public parking fees, making it more convenient and cost-effective for owners.
Additional Incentives
- Access to Bus Lanes: Since 2005, EVs have been allowed to use bus lanes, providing a time-saving advantage for EV owners.
- Company Car Tax Reduction: From 2000 to 2008, a 25% company car tax reduction was offered, increasing to 50% from 2009 to 2017. The reduction was lowered to 40% from 2018 to 2021 and further reduced to 20% in 2022.
- Charging Infrastructure: Norway has established a well-organized charging network, with fast-charging stations available on all main roads. This addresses the range anxiety associated with EV ownership.
- "Charging Right" for Apartment Residents: Legislation passed between 2017 and 2021 ensured that residents of apartment buildings have the "charging right," allowing them to install charging stations in their homes.
- Reduced Ferry Fares: Electric vehicles pay a maximum of 50% of the total amount on ferry fares, further reducing the cost of EV ownership.
These incentives have made EVs a financially attractive and convenient option for Norwegian consumers. By promoting the adoption of zero-emission vehicles, Norway is well on its way to achieving its ambitious climate goals and leading the transition to a more sustainable future.
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China's EV subsidies
China is the biggest player in the electric vehicle (EV) market. In 2022, 22% of passenger vehicles sold in China were all-electric, accounting for 4.4 million sales. This is higher than the 3 million EVs sold in the rest of the world combined. China's support for EVs has helped drive down battery costs, making EV adoption easier worldwide.
China's EV success is due in large part to its government's sustained regulatory and financial support for domestic producers. In 2009, China began offering financial subsidies and tax breaks to EV producers and consumers, with pilot cities customising the amount and type of subsidies to fit their needs. From 2009 to 2022, the government invested over 200 billion RMB ($29 billion) into relevant subsidies and tax breaks. While the subsidy policy ended in 2022, it achieved its intended effect: the 6 million EVs sold in China that year accounted for over half of global EV sales.
China's government has propped up both the supply of and demand for EVs, leading to the emergence of numerous homegrown EV brands. These include BYD, which rose to prominence by keeping a close relationship with the southern city of Shenzhen and helping it become the first city in the world to completely electrify its public bus fleet. China's government also helped domestic EV companies by handing out procurement contracts, providing reliable revenue streams.
In addition to subsidies and tax breaks, other state policies encouraged individuals to purchase EVs. For example, in populous cities like Beijing, car license plates have been rationed for over a decade, and it can take years or thousands of dollars to get one for a gas car. However, this process was waived for people who purchased an EV.
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Iceland's plug-in car segment
The Icelandic government has been actively investing in the installation of charging stations across the country, making it more convenient for electric vehicle owners to charge their cars. Local incentives for EVs support national subsidies and the charging infrastructure rollout. For example, the City of Reykjavik offers free charging and time-limited free parking for low-emission vehicles.
In addition, Iceland's unique geography and energy sources contribute to the growth of the EV market. The country has abundant renewable energy resources, particularly geothermal and hydroelectric power, which make electric vehicles a more sustainable and viable option.
The EV market in Iceland has been experiencing significant growth in recent years, driven by changing customer preferences, favourable market trends, and unique local circumstances. Customers in Iceland are increasingly choosing electric vehicles due to their environmental benefits and cost savings. In 2017, 2.0% of new car registrations were BEVs, and 6.8% were PHEVs, for a total EV share of 8.7% by the end of the year. Halfway through 2018, the EV share had increased to 13.5%.
Iceland has quietly become one of the leading EV markets worldwide, with its foundation for low-carbon transportation laid decades ago. The country's small size, sustainable focus, and supportive government policies have contributed to its success in the EV sector.
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France's public charging network
Norway and China are among the top countries scaling electric vehicles at rates needed to meet international climate goals. Norway is one of the coldest regions in the world, and given concerns about the performance of EV batteries in low temperatures, one would expect that Norway would be one of the last regions to adopt EVs. However, Norway and its Scandinavian neighbours, Iceland and Sweden, are far ahead in EV adoption, with eight out of ten passenger car sales in Norway being electric in 2022. This is due to government incentives and promotions that have been in place since the 1990s. China, on the other hand, has seen tremendous growth in EV sales, with 22% of passenger vehicles sold in 2022 being electric, amounting to 4.4 million sales. China's support for EVs has helped reduce battery costs and make EV adoption more accessible worldwide.
Now, let's shift our focus to France's public charging network:
France is one of the most progressive countries in Europe regarding electric vehicles. It boasts over 30,000 charging points across the country, making it convenient for EV drivers to power their vehicles on the go. Marseille is the city with the most charging stations in France, while Larnage has the least. However, due to the country's vast size, spanning over 248,000 square miles, locating these stations can be challenging. Fortunately, various tools and resources are available to assist drivers in finding charging points, such as European apps and websites like Chargemap, Electromaps, and Izivia. These platforms provide real-time information and allow users to filter results by vehicle and connector type, ensuring they find compatible charging stations. Electromaps, for instance, has a database of 60,368 charging stations in France and offers a mobile app for iOS and Android devices, providing specific details about each charger for free.
Charging an electric vehicle in France can be done using either a 120-volt or 240-volt outlet. The latter, also known as a Level 2 charger, is much faster, adding between 15 and 25 miles of range per hour. Most public charging stations use this voltage. For those hiring a Tesla, Superchargers are available, adding over 150 miles of driving capacity in just 30 minutes. It's worth noting that many charging stations in France require a pass for activation, such as the Electropass, which offers universal access to multiple charging networks.
When planning a trip in France with an electric vehicle, it's advisable to map out a driving route that includes compatible charging stations. This can be done using apps like Chargemap, which help users locate charging points in different regions of France. The type of vehicle and its charging requirements, as well as driving speed and distance, will influence how often and for how long one needs to stop to power up.
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Sweden's electric road
Norway, China, and Sweden are among the countries doing the most to bring out new electric vehicles. Norway is far ahead of other countries in terms of EV adoption, with eight out of ten passenger car sales in 2022 being electric vehicles. This is largely due to the Norwegian government's deliberate and consistent promotion of EVs since the 1990s. China is also a leader in EV adoption, with 22% of passenger vehicles sold in 2022 being electric, amounting to 4.4 million sales. China's support for EVs has helped reduce battery costs and make EV adoption more accessible worldwide.
Sweden is also making significant strides in the EV space, particularly with its innovative electric road system (ERS) projects. The Scandinavian country has pioneered electrified roads through several pilot projects, including the world's first temporary electric road and the first wireless electric road for heavy-duty vehicles. Sweden is now working on the world's first permanent electrified road, where cars and trucks can recharge while driving, with plans to expand this technology to 3,000 km of electric roads by 2035 or 2045. This dynamic charging technology will enable vehicles to travel longer distances with smaller batteries and avoid waiting at charging stations.
The Swedish Transport Administration electric road program, led by Trafikverket, began in 2012 with assessments of various electric road technologies starting in 2013. Overhead power lines were first tested, followed by ground-level power supply electric roads. In 2018, Trafikverket inaugurated the world's first charging rail for electric vehicles on public roads, with a 2 km stretch of electrical rail milled into the asphalt, allowing electric trucks to lower a moving arm to receive power. This was followed by a wireless electric road for heavy trucks and buses in the city of Visby in 2020.
Sweden has also partnered with Germany and France to exchange knowledge and research on electric roads. This collaboration has resulted in demonstration facilities in both countries and plans for a pilot electric road section in France. The Swedish government has actively supported the development and standardization of electric road systems, with the European Commission publishing a request for regulation and standardization in 2021. Sweden's efforts in EV technology and infrastructure development demonstrate its commitment to decarbonizing the transport sector and achieving its net-zero goals.
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Frequently asked questions
As of 2023, Norway has the highest number of electric vehicles per capita, with 91% of new car sales being electric.
As of August 2023, China has the most electric vehicle charging stations, with over 7.2 million charging units.
In 2023, Norway had the highest percentage of electric vehicles as a share of new car sales, with over 90%.
While Norway has the most electric vehicles per capita, China is the biggest player when it comes to the growth of the electric vehicle market. In 2022, 22% of passenger vehicles sold in China were electric, higher than the 3 million EVs sold in the rest of the world combined.
In 2023, 7.7% of new van registrations in the EU were electric.
