Wed. Dec 6th, 2023
    Norway’s Electric Vehicle Transition: Lessons for Australia

    Norway has long been hailed as the leader in the global electric vehicle (EV) transition. Through consistent and bipartisan political support, Norway’s EV policies, which date back to 1990, have paved the way for a sustainable future on their roads. As a result, the country set an ambitious end-date for the sale of internal combustion engine (ICE) vehicles – by 2025, ICE passenger and light commercial vehicles will no longer be available for purchase.

    The latest data from Norway reveals a remarkable shift in consumer preferences. As of September this year, plug-in electric vehicles (PEVs) accounted for a staggering 93% of new car sales. A closer look at the breakdown shows that 87% of PEVs sold were full-battery electric vehicles (BEVs), while only 6% were plug-in hybrid EVs (PHEVs). It is worth noting that while PHEVs will still be permitted for sale post-2025, traditional hybrid EVs without a recharging plug, known as hybrid EVs (HEVs), will be banned.

    The transition to a predominantly BEV fleet in Norway is not only driven by government policy but also by market forces. Manufacturers, such as Hyundai and VW, have already started phasing out ICE vehicles from their lineup in Norway. This aligns with the growing economic case for BEV ownership, as the advantages of lower maintenance costs and reduced emissions become increasingly evident.

    An intriguing question arises: How long will it take for Norway to achieve a 100% BEV fleet? Current data indicates that BEVs make up 22.6% of Norway’s passenger car fleet. Considering the average car lifespan of 10.7 years in Norway, it is expected that around half of the existing BEVs will still be on the road by 2034, even without policy changes. The remaining ICE vehicles will continue to decrease gradually over time, signifying that Norway’s early adoption of BEVs will result in ICE vehicles lingering on the roads for more than a decade beyond the 2025 cut-off date.


    Q: What is the main reason for Norway’s successful EV transition?
    A: Norway’s EV transition success can be attributed to a combination of long-standing government policies, bipartisan support, and a favorable economic case for BEV ownership.

    Q: Will hybrid EVs still be available for sale in Norway after 2025?
    A: Yes, plug-in hybrid EVs (PHEVs) will still be allowed for sale in Norway after 2025. However, traditional hybrid EVs (HEVs) without a recharging plug will be banned.

    Q: How long will it take for Norway to achieve a 100% BEV fleet?
    A: Based on current data, if no policy changes occur, it is estimated that half of Norway’s BEV fleet will still be in use by 2034, with the remaining ICE vehicles gradually phasing out over time.

    Q: Are manufacturers in Australia following Norway’s lead in phasing out ICE vehicles?
    A: The Australian government has taken steps to limit the eligibility of plug-in hybrid EVs (PHEVs) under the Fringe Benefit Tax incentives starting in 2025. However, Australia still lacks a Fuel Efficiency Standard (FES) and has poor fuel quality standards, hindering the transition to low and zero-emission vehicles.


    – The Driven: [Norway’s EV policies started back in 1990](
    – Renew Economy: [Electric Vehicles Transition in Norway](