While expert projections suggest the United States may not see electric vehicles (EVs) overtake gas-powered cars until at least 2050, Norway may be able to do it by as early as the end of this year. That would make the Nordic nation the first country in the world with EVs outnumbering conventional vehicles on its roads.
Out of the 2.9 million vehicles in Norway right now, nearly a quarter are electric, trailing gas-powered cars by less than 80,000 units. In 2023, over 82.4% of new vehicles sold were electric, a trend that has since continued, with 89.3% of sales during the month of March attributed to EVs.
This year, the Norwegian EV Association expects the EV share of their total new vehicle sales will jump to 95%.
The Norwegian government has levied significant additional taxes on gasoline cars, amounting to nearly $30,000, while offering attractive tax incentives for EV buyers. This approach has made electric vehicles much more affordable, as officials in the country have indicated that EVs now cost approximately one-third of the price of gas cars.
With investments totaling over $7.5 billion in the past two years, the nation has allocated substantial resources towards incentivizing EV ownership and bolstering infrastructure development. On average, Norway spends nearly $4 billion annually on EV subsidies in recent years.
To fund these efforts, Norways has used revenue from the very material it is attempting to transition away from.
The Norwegian Oil Fund, the largest sovereign wealth fund on the planet at a value of around $1.5 trillion, has been instrumental in keeping these policies going. With this wealth, Norway has also invested in some of the world’s leading electric vehicle manufacturers, such as Tesla and BYD.