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Why is Norway the land of electric cars?

I’m looking at doing a cross-country trip in Norway, and in my research I was told to rent an electric car because Norway is the land of electric cars. Why is Norway the land of electric cars?

avatar
Bellina Gaskey · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Norway is indeed a very friendly country for electric car users. Norway is called the land of electric cars because they have been quietly building up to dominate the electric car scene, which has been
steadily growing
.
For the last three decades, Norway has been adopting electric vehicles and integrating them into daily living. They’ve put mountains of incentives into place for electric vehicles, including:
  • Exemption from the country’s 25% value-added tax
  • Exemption from road tax
  • Reduced road and ferry tolls
  • Discounted parking
  • Use of bus lanes
The latest numbers suggest more than a quarter of vehicles on the road in Norway are electric.
As mentioned, this is largely because of the incentives put into place; most notably the absence of a 25% VAT. Norway isn’t the only place to have incentives for going green. Check our list of states’ incentives to see which you can qualify for.
Incentives through your state aren’t the only way to
save money when you buy an electric vehicle
. With
Jerry
you can find a car insurance policy that takes your green vehicle into account.
These incentives and more have led to Norway having their own Norwegian Electric Vehicles Association with more than 90,000 card-carrying members. This ties nicely into the country’s goal; Norway wants to become the first country to discontinue the sale of gasoline and diesel cars.
A lofty goal, but with the exemption from a 25% VAT making an
electric Tesla
as affordable as a gasoline vehicle, Norwegian drivers bought 114,579 electric vehicles in 2021. This means that 22% of the vehicles registered in Norway that year were electric.
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