Electric vehicles in Norway and in the Oslo region

Electric vehicles in Norway and in the Oslo region

Erik Figenbaum13.05.2013

1993/94 2013• Nationwide

– About 65 EVs– 10 charging stations

– Tens of EVs sold

• Oslo region– 40 EVs– 10 charging stations

• Nationwide 1.quarter– About 12000 vehicles – 4000 charging stations, – 127 fast charge stations– 4000 EVs sold 2012

• Oslo region– 5000 EVs– 1750 charging stations, – 45 fast charging stations

[email protected] 13.05.2013

So how did this come about?


Up to 2000 – preparation and imports

• Vehicle registration tax exemption from 1991/1995• Free parking introduced 1999

• Some imports of Kewets from Denmark and eventually a factory with all tools and IP rights

• Think in development phase, bankruptsy, rebirth and new life as a Ford US subsidiary

• Stavanger gaining traction, linking to Peugeot getting a deal on deliveries of EVs to Stavanger area, lobbying to get EVS24 to Stavanger in 2009

• In 2000: only 383 EVs in national fleet


From 2000 a bumpy ride but gaining traction

Access to bus-lanes in test area

VAT exemption introduced

Permanent access to bus lanes, minibus no longer allowed,Free ferries

Mitsubishi I-Miev launch

Nissan Leaf launch

Reduced annual tax

VAT exemption decided

Transnovas charging station program

Ford pulls out of Think

Think bankrupt

Think launches new model

New Buddy launched by Pure mobility

Think bankrupt

Pure mobility bankrupt

Ford launches Thinks first model

Kewet Buddy launched by ElbilNorge

Think production moved to Finland

First fast chargersFrench EVs 1. gen

sold by norwegian importeurs

Second hand imports of french EVs

REVA EV launched

EVS 24 in Stavanger 1500 del. Source: OFV/Grønn

bil

Sales 2011-2013


Nissan expanding nationwide

Mitsubishi delivering backlog of pre-orders

Nissan Leaf launch

Mitsubishi, Citroen, Peugeot price reductions

Source OFV


Modelsplit sales 2011-2012

Source: OFV


Development of national EV fleet

Base of around 3000 devoted EV drivers when the big automakers launched cars in 2010

A survey of EV owners in 2006 showed that they identify themselves as EV drivers


1. gen up to 2009 2.gen from 2010

• Small independent producers, uncertainty

• No warranty• No safety rating• Think 290000 NOK• Few dealers

• Buyers traded comfort and safety for access to buslanes and free tolls

• Established automakers and importers

• 5 year/100000 km warr.• 4/5 star EuroNcap rating• Mitsubishi price 240000

NOK• Mitsubishi 04/13 182000

NOK• Nissan Leaf 07/13 220000

NOK


Geographical spread of EVs

Source: Grønn bil/OFV


EVs in norwegian media

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

0

500

1000

1500

2000

2500

3000

3500

4000

4500el-bil O...

Media focus started 2-3 years before car-manufacturers launched cars

Source: Retriever


Access to parking at the household

Private households

No cars 1 car 2 or more cars

Total

The household have a garage or carport 201 943 577 93130 %

358 60018 %

1 138 47458 %

The household does not have a garage or carport, but have a reserved parking place

170 815 224 82612 %

88135 %

483 77125 %

The household have no parking facilitites 209 809 105 840 23654 339 30317 %

Total 582 56730%

908 59746 %

470 38424 %

1 961 548

2 or more cars and parking facilities at home: 23%1 or more cars and parking facilities at home: 65%Households with parking facilities at home: 83%

Source: SSB 2001

Likely more multicar households today


EVs - a rational choice • Price on par or cheaper than gasoline car• Low user costs thanks to high fuel taxes• User benefits of great value if you use them• Many multicar households with garage/carport• Positive image• Good cars have arrived in the showrooms

A very competitive free market.


Marketing creativity


Who are the buyers?• Belongs to a multi car household• Belongs to households with more people• Drives as much as other multi car households• Younger than buyers of regular cars• More inclined to be well educated and in the work force

• The new vehicles bought from 2012 are used as much as comparable gasoline cars (2013 NTNU survey)

• Earlier EVs had lower annual mileage (ECON 2006 survey)

• A few buy it as their single car and they have reduced annual mileage compared to other single car housholds

For which trips are the vehicles used?

[email protected] 13.05.2013Source: Klöckner et al, NTNU


The power of incentives…

• Bus lane access switch from minibus to EVs in test areas had immediate effect on sales:

Source: Vista Analyse AS 2011


Ranking of incentives1. VAT exemption – cuts vehicle price 25%2. Access to bus lanes – Vaining importance as vehicle sales

spread to regions with few bus-lanes 3. Toll road exemption4. Reduced annual tax5. Free parking6. Expansion of charging stations

Runner up: Reduced company car benefit tax

Early days: Exemption from tax on vehicle registration


How did EVs get all these incentives?

• 1990s: Removing disincentives to get testing going, local initiatives on free parking, toll road exemption created bottom-up push on government, energy industry involv.

• 2000s: The dream of an EV industry, needed a strong homemarket to thrive

• 2010s: Climate policy, increasingly important part of transportation sector efforts, NGOs, car importers push

• Always one more incentive needed, • New pressure groups joined the party along the way


But most important of all…

• It is much easier to NOT collect a tax than to collect taxes and then HAND OUT a subsidy

• Electric cars was a managable fleet size for access to bus lanes at the time it was decided


The unfortunate cousin

• Plug-in hybrids have few incentives• They come well out of the registration

tax• VAT makes the cars extra expensive• No local benefits

• Very slow sales, (about 500 in fleet)• but needed to reach national goals


National targets – Passenger cars


Safety - fires • Fires related to

illegal modifications

Sources: www.vg.no; www.rb.no

http://www.vg.no/


Safety - accidents

Source www.budstikka.no Source www.bt.no

http://www.budstikka.no/

http://www.budstikka.no/


Learning points• EVs a rational choice for consumers• Most buyers are private citizens • EVs bought as secondary vehicles, being used as primary • Buyers use the cars a lot and are more car-use inclined – • EVs winter range - worst case half of official• Cold temperature slows fast charging to half speed• Owners illegally upgrade/modify old cars

• Lot of knowledge and EV-entusiasm built-up in the slow market growth up to 2010, ready for the good EVs


Outlook• Economic incentives freezed through 2017• User benefits may change in cooperation

with local authoritites• Many new models arriving

– Waiting list for Tesla Sedan S– Volkswagen, Norways biggest brand,

launching cars 2013 and 2014– BMW, Ford and others coming up

Electric vehicles in Norway and in the Oslo region

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