Major Developments in 2023
The market share for battery electric passenger vehicles passed 80% for the first time. There was a rapid build-out of fast chargers so the number of battery electric vehicles (BEVs) per fast charger decreased from 106 in 2022 to 89 in 2023.
The government and the parliament reduced some of the zero-emission vehicle (ZEV) incentives in 2023. The zero rate VAT that has applied to all new ZEVs from 2001 through 2022 was changed from January 1st, 2023. The zero rate now only applies to the purchase price up to 43,000 euros.
The VAT is 25% on the part of the purchase price that is above 43,000 euros. Simultaneously, a new flat rate weight registration tax of 12.5 NOK/kg of weight above 500 kg was introduced on all passenger vehicles. BEVs are still exempt from other elements of the registration tax. Light commercial vehicles have a registration tax that is a percentage of the rate for passenger cars and thus also got a weight tax in 2023. In 2022, BEVs paid a maximum of 50% of the internal combustion engine vehicle (ICEV) rates. From 2023, the rate was changed to 70%.
It is up to local authorities to decide any percentage between 0% and 70%. Heavy duty zero emission trucks can still be 100% exempted from road tolls. From 2024, subject to local agreements, it will be possible to give small electric light commercial vehicles and heavy-duty biogas vehicles up to 100% reduction of the road tolls in all road toll projects where the state is a partner. Previously these two categories could only get road toll exemptions in city toll road projects. The Government decided in 2023 to move forward to only procure zero emission buses for use in public transport from 2025 to 2024.
The total passenger vehicle market was slow in 2023. In part because of an economic downturn, and in part due to record deliveries of BEVs in 2022 to avoid the 2023 tax increases. Vehicle buyers have, however, not seen an actual increase in BEV prices because the year started with large Tesla price reductions that forced other brands to offer large discounts to be able to compete with Tesla.
The battery electric bus market was strong with large deliveries to Oslo in December. Bus operations within Oslo city are now close to 100% battery electric. The exemption is a few buses going to a small island where the bridge cannot manage the higher weight of battery electric buses. The December delivery coincided with a heavy snowfall that caused large bus traffic problems, followed by the most extreme low temperatures in decades that led to range and charge time issues. This came on top of expected start-up issues when new buses entered operation.
For heavy duty trucks, the main incentive is, besides exempted or reduced road tolls, support from the national climate measures funding agency ENOVA. The ENOVA support programs change frequently.
During 2023, it was possible to get support for company internal depot charging, battery electric trucks and construction machinery, hydrogen trucks and hydrogen filling stations for heavy duty vehicles, and depot chargers for light commercial vehicles (LCVs).
ENOVA also had tenders for roadside public fast chargers for trucks and chargers for construction sites. They have also decided to support a test program in 2025 with dynamic inductive charging in a bus depot in Trondheim. The ENOVA support for battery electric LCVs was terminated in May 2023. They are considered technologically mature by ENOVA and the market should take over. ENOVA also supported battery electric and hydrogen maritime applications in 2023.
Outlook
The battery electric vehicle (BEV) market share in the passenger vehicle segment will pass 90% in 2024. The largest vehicle importer to Norway, Møller Mobility, decided that as of January 1st, 2024, Volkswagen will only sell battery electric passenger vehicles in Norway. They are doing this as a preparation for the national target of only selling ZEVs in this segment from 2025. Other traditional brands that are now only selling battery electric passenger vehicles are: Citroën and DS Automobiles, Cupra, Fiat, Hyundai, Lexus, Lotus, Opel, Peugeot, Smart and Subaru. Audi is also all electric apart from the RS model variants. Tesla and the following other brands are also only selling battery electric ve: BYD, Fisker, HiPhi, Hongqi, JAC, Lucid, Nio, Maxus, MG, Polestar, Seres, Voyah, Zeekr, Xpeng.
A new more ambitious target for zero emission trucks, 100% sales share in 2030, was decided by the parliament in December 2023. This target and the availability of long-range series-produced battery electric heavy-duty trucks will lead to larger market shares in 2024. The first BEV Regional Scania truck with 624 kWh battery was registered at the beginning of 2024. Other competitors will come on the market with trucks with similar battery sizes, such as the Mercedes eActros.
The use of battery electric trucks will thus be expanding, although the costs of the trucks and the charging infrastructure remain a barrier. Battery electric trucks compete with biogas which has more incentives compared to the last few years. Biogas has fewer adoption barriers for small fleets that may have problems putting in place depot charging for battery electric trucks. Biogas trucks counts towards the 100% target. There are still no hydrogen trucks available from full series production so this option will not expand in 2024.
