EVS28KINTEX, Korea, May 3-6, 2015

The Norwegian EV-success, and what happens when sales are getting high

Christina Bu, Secretary General, Norwegian EV Association, christina@elbil.no

Introduction

I. The Norwegian EV AssociationII. The Norwegian storyIII. The discussionsIV. The learningsV. The end

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The Norwegian EV Association

• NGO to promote renewable electric road transport • 18.000 members (EV owners)• 7 employees• 20 years of experience with EVs• Valuable input to policy makers and EV industry• Uniqe experience in a small market with the largest share of

electric vehicles in the world

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EV-festival, Trollstigen

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Norwegian EV policy

• No purchase taxes (extremely high for ordinary cars)

• Exemption from 25% VAT on purchase

• Low annual road tax• No charges on toll roads or ferries• Free municipal parking• Access to bus lanes• 50 % reduced company car tax

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All political parties contributed to EV policy

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Year Political decisions Government1990 Temporary exemption from vehicle registration tax. Ap1996 Final exemption from vehicle registration tax. Ap

Low annual motor vehicle tax Ap1997 Exemption from paying at toll roads Ap1999 EV-signs for electric cars (EL) KrF/SP/V

Exemption from payment at public parking KrF/SP/V2000 Reduced company car tax KrF/SP/V2001 Zero VAT when buying a new car Ap2003 Temporary permission to use «bus lanes» in Oslo and Akershus H/KrF/V2005 Access to bus lanes in the whole country H/KrF/V2008 Extra milage allowance Ap/Sp/SV2009 Extra reduction in the company car tax Ap/Sp/SV

Free passage for the EV on state owned ferries Ap/Sp/SV2013 Decision to exempt leasing of EVs and batteries from VAT (but not yet put in place.

Ministry of Finance have asked EFTA Surveillance Authority (ESA) to consider this legally)H/FrP

2014 No changes in the budget for 2015 when it comes to Evs. Plug-in hybrids get 26 % reduction in registration tax (up from 15 %)

H/FrP (support from V/KrF)

Ap=Labour Party / KrF=Christian Democrats / SP=Centre party / V= Social liberal / H=Conservative party / SV=Socialist left / FrP=Progressive party

Agreement on Norway’s climate policy

Most important (2007):• Carbon neutrality by 2030. This means Norway would have t

o reduce emissions by the equivalent of 100% of its own emissions

• 2/3 of reductions to happen nationally• By 2020, 12 % reduction compared to 1990-emissions2012:• Keep EV-incentives until 2018 or 50.000 vehicles• Maximum 85 g/km from new cars on average by 2020

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Why BEV incentive scheme and success?

• Climate emissions• Own production of EVs 1990-2011.• The car tax system• The consumers• Collective support• Clean energy

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Number of registred BEVs

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• BEVs = 12,7 % of total car sale in 2014• Total: 41051 BEVs + 2391 PHEVs

EV owners very satisfied

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EV owner survey juni 2014:- 3405 respondents- 12 % of all EV owners

How satisfied are you withbeeing an EV driver?

The nabour effect

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How many do you think you have inspired to buy an electric car? – more than 3 on average.

1 2 3 4 5 6-9 10+ none

How did you get to work before your BEV?

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BEV without tax-exemption?

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Would you have bought an EV without thetax-exemption (VAT + tax)?

Why I chose an BEV (most important reason)

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Beginning of a paradigm shift?

• Some loose, and will complain

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Discussions

• The costs of the tax exemptions• The bus lanes• Free ferries• The toll roads

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BEV market share 2014, by county

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2% 3%

12%

9%

9%

9%

7%

4% 4% 9%

18% 8%

6%

23%

14%

12%

14%

6% 19 %

Degree of expressed disadvantages with EVs

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37%

26%

74%

62%

51%

25%

20%

31%

15%

21% 22%

18%

1% 3%0%

10%

20%

30%

40%

50%

60%

70%

80%

UNCERTAINTY ABOUT INCENTIVES

SECOND HAND VALUE

UNCERTAINTY

VEHICLE RANGE ACCESS TO CHARGING STATIONS

TIME TO CHARGE VEHICLE SIZE IMPRACTICAL WITH CABLES

REGUALR CAR-OWNERS EV-OWNERS

Source: TØI 2014, https://www.toi.no/getfile.php/Publikasjoner/T%C3%98I%20rapporter/2014/1329-2014/1329-2014-el.pdf

Political changes?

• No change for BEVs in 2014-budget, but less taxes for PHEVs• Politicans from most parties: BEVs should always compete in

relation to gasoline and diesel vehicles.• Review of the norwegian car taxes ready middle of May.

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www.evnorway.no

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