Electric cars reached a 77.5% share in September in Norway. But new government plans to tax electric cars with purchase price over €60,000

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In Norway, 13,946 new electric cars were registered in September, with electric cars accounting for 77.5% of them. The best-selling model was the Tesla Model Y with 3,564 new registrations, ahead of the Tesla Model 3 with 2,218 registrations.

Compared to the 9,560 EV registrations in September 2020, the 13,946 new electric cars in the previous month represents an increase of almost 46%. At that time, the share of electric registrations was 61.5%.

With the 13,946 new electric cars registered in September, 80,558 new electric cars have been registered this year, according to the Norwegian Road Information Authority (OFV). This corresponds to a market share of 62.5% from the beginning of January to the end of September. This figure refers to battery electric cars, hybrid vehicles are not taken into account.

The 13,946 electric cars joined 2,508 plug-in hybrids in September, with a market share of 13.9% (down 19.9% from September 2020). In total, 91.4% of all new cars in Norway had an external charging connection in September – in August this figure was 87.7%, in July 84.6%. By comparison, petrol-only cars had a market share of 3% and diesel-only cars 2.3%.

Nordic country also plans to tax luxury cars

According to a Norwegian media report, the country’s new government is planning a luxury tax on expensive electric cars. Specifically, the incoming cabinet plans to impose a 25 percent value-added tax on the portion of the purchase price exceeding 600,000 kroner (about €60,000).

According to a Reuters report, the introduction of the tax is likely to take place in the context of a change of government in Norway. Until now, all fully electric vehicles have been tax-free. Recent national elections now favor a center-left alliance. It is thought likely that the next government will be led by Labor’s Jonas Gahr Stoere and will be made up of parties that have campaigned for the introduction of a 25% VAT on that part of the price of new cars over NOK 600,000.

This would affect electric cars from Porsche, Audi and Mercedes-Benz, among others. According to the news agency, Labor argues that the measure is justified on fairness grounds. In addition, the tax exemption for the purchase of electric cars is intended as a means of introducing new technologies and cannot be applied indefinitely, Svein Roald Hansen, tax policy spokesman for the Labor Party, is quoted as saying in the report.

But there are opponents to the proposed measure, such as the Norwegian EV Association. According to Reuters, the head of the organization Christina Bu warns that a tax on luxury electric vehicles will come at an inopportune time and ultimately slow Norway’s electrification.

In Norway, all newly registered cars, light commercial vehicles and buses must be pure electric by 2025. In September 2021, electric cars already accounted for 77.5% of new registrations.

Edited for English

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