The Norwegian car industry is experiencing a silent revolution of electric cars.
The wealth European nation of 5.3 million people is buying electric vehicles.
The independent Norwegian Road Federation (NRF) said on Wednesday that electric cars rose to 31.2 percent of all sales last year, from 20.8 percent in 2017 and just 5.5 percent in 2013, while sales of petrol and diesel cars plunged, according to Reuters.
How is Norway encouraging this boom.
Reuters reports that Norway exempts battery-driven cars from most taxes and offers benefits such as free parking and charging points to hasten a shift from diesel and petrol engines.
This has resulted in almost a third of new cars sold in Norway last year were pure electric, a new world record as the country strives to end sales of fossil-fueled vehicles by 2025.
The car industry is undergoing a radical transformation, with most carmakers agreeing the next 10 years will bring more change than the two previous decades. The next target date cited by automakers as a tipping point is 2025, when everything from materials and fuel to cost and the companies that build cars are set to look dramatically different.
Automakers are preparing to phase out cars powered solely by internal combustion engines (ICEs) as governments look to tackle fuel emissions. The growth in electric vehicles (EVs) and hybrid electric vehicles (HEVs) is climbing and by 2025, EVs and HEVs will account for an estimated 30% of all vehicle sales. Comparatively, in 2016 just under 1 million vehicles or 1% of global auto sales came from plug-in electric vehicles (PEVs).
By 2025, J.P. Morgan estimates this will rise close to 8.4 million vehicles or a 7.7% market share. While this jump is significant, it doesn’t compare to the kind of growth expected in HEVs – cars that combine a fuel engine with electric elements. This sector is forecast to swell from just 3% of global market share to more than 25 million vehicles or 23% of global sales over the same period. This leaves pure-ICE vehicles with around 70% of the market share in 2025, with this falling to around 40% by 2030, predominantly in emerging markets.