Indian clean transportation summit: ‘In Norway, incentives pushed EV adoption’

In 2023, 87% of all passenger cars sold in Norway were electric, making it the country with the highest EV market penetration in the world. Markus Nilsen Rotevatn, the Norwegian EV Association project lead, spoke with Snehil Sinha about the 15-year transition to EVs. Edited excerpts:
How did the switch towards EVs start in Norway?
This is the most interesting part of the EV revolution in Norway. Most people would be aware of the pop band A-ha, a band from Oslo that became hugely popular globally in the 1980s. This group decided to import a Fiat Panda and got it retrofitted (turning it) into an EV with the help of a professor and environmental activist. They then went around the country and refused to pay any tolls or taxes. That was the first EV in Norway, and this sort of “civil disobedience” paved the way for many of the regulations and policies related to EVs.
About 86-88% of all new cars sold in Norway are electric. Delhi’s EV penetration is just about 12-15%. It is even lower in other Indian cities. How did Norway achieve this?
Norway has a population of about 5.5 million. In 15 years, from zero EVs, we are now approaching about 100% of all new cars being EVs.
It is important not to underestimate the 12-15% (EV) car sales in Delhi because that is about the same as the entire European Union. It is crucial to understand that in Norway, the consumer is not choosing the type of car based on environmentalism or any engagement with global issues. They are choosing it purely with their wallets (it is cost-effective). All policies are aimed at levelling the playing field between EVs and other fossil fuel-driven cars. So, Norway ensures that it is equally priced in stores and is cheaper to use during its lifespan. There cannot just be one policy to bring such a change. Different policies were put together to ensure this economic factor pushed demand among consumers.
Norway doesn’t manufacture EVs. Was this a concern among consumers? What initiatives were taken to increase EV uptake among consumers?
It was not a concern. Norwegian consumers prefer cars made in Europe. Apart from reducing initial costs, EV users were offered several incentives that fuelled demand. We have a value-added tax of about 25% for all those who buy fossil-fuel cars, but EVs are exempt from it. There is another tax collected during the purchase of all cars based on the vehicle’s weight and emissions, which EV drivers don’t pay. Additionally, EVs are exempted from paying any toll taxes, which can also be a popular [strategy] in India [to promote EVs].
While all these efforts have been made for personal cars, have other segments, such as commercial freight vehicles, trucks, and two and three-wheeler segments, also started switching to EVs?
We have seen that the EV push in cars has automatically impacted almost all other segments. So, while no incentive was given for buses, the fleets have already started switching to electric as have the truck fleets. All public transport in Oslo is entirely zero-emission based now, and since water transport is also a common mode of travel in Norway, 60% of the ferries are also electric now. In fact, we are going to start the first commercial electric flight on a 200-km route from Bagen to Forde. The first flight is expected in 2026, and the seats are already sold out.
What’s the user’s experience with EVs? Are there concerns about charging?
With the better technology of EVs, range anxiety is a thing of the past. There were concerns about charging their vehicles. However, as the number of vehicles and demand increased, suppliers also came forward and set up charging stations across the country. So, even charge anxiety is gone now.
We conduct an annual survey of around 15,000 vehicle owners and ask them how happy they are with their EVs. This year, around 93% said they were either “happy” or “very happy.”
So, what are the challenges Norway still faces in the EV sector?
There is just one problem that we still have to deal with. In Norway, all OEMs have separate apps or payment methods for charging EVs so that they can retain their customers. This needs to be centralised so that a common payment method can be used for charging. Now, we have approached Parliament, asking that EV charging be categorised as critical infrastructure so that standard payment solutions can be used by EV owners, such as swiping a card and paying for charging.