With the increase in battery electric vehicles (BEVs) in Norway, sales of diesel vehicles in the country have declined significantly. Some models, such as the Volvo V40, the V70 and the XC60, have seen a decline in sales of around 95% since 2013. In the same period, the consumer market share of diesel and gasoline vehicles in the first half of the year almost halved alone in 2019, 55% of all car sales went to BEVs. These figures were published in a press release by independent energy research firm Rystad Energy.
"This introduction of electric vehicles has led to a dramatic decline in sales of conventional gasoline and diesel vehicles, with the steepest decline in the diesel segment. Artyom Tchen, senior analyst on Rystad Energy's oil market team, said in the news release. "High-performance battery electric cars have reduced the sales of high-end diesel vehicles, especially SUVs and sedans, which are also the most energy-consuming private vehicles on the market."
Tesla's Model 3 was recently the leader in Norwegian BEV sales and achieved 13.5% of newly registered vehicles in 2019. Øyvind Solberg Thorsen, Head of the Information Service for the Roads of the Country (OFV), said that it is unusual for a model to exercise such market dominance, according to a report in the local magazine E24 !. In June, the total number of Teslas registered in Norway exceeded 40,000 vehicles, and sales of the Model 3 accounted for around 70% of electric vehicle manufacturer sales in May. In particular, the Standard Range Plus variant of the model 3 arrived in Norway this month.
The reason for the sharp decline in diesel purchases in Norway seems to be the country's efforts to promote the sale of clean energy vehicles. "Two factors play a role in the sharp decline in new diesel vehicles," Rystad's report revealed. "Traditionally, a high proportion of vehicles sold are mid- and high-end diesel models for which the market share would naturally be greatest. Secondly, the sales reductions for new diesel vehicles are closely linked to consumer fears about possible restrictions or even a ban on diesel vehicles in the country.
Other measures that support this market change include a system of toll, toll and tax payments in favor of electricity vehicles that are currently in force. For example, electric vehicles for ferries, public parking and toll roads only pay a maximum of 50% of the toll, and all cars are subject to a progressive tax system based on their emissions – high emissions have high taxes. Norway is also committed to the long-term goal of completely banning fossil fuel vehicles by 2025.
As a world leader in the clean energy industry, Tesla's success in Norway is indicative of the company's overall mission to drive the same transition worldwide. CEO Elon Musk has repeatedly praised Norway for its vision of clean energy, citing its hydropower network, the transition to emission-free vehicles and its commitment to a carbon-free environment. "The Norwegians should be proud. They are the world leader in the first place and in this field, "he said during a lecture in 2016.