Volkswagen looks set to get a jump on its competitors by ending the sale of petrol and hybrid cars in Norway by the end of next year.
According to Tek.no, Volkswagen Norway will announce later this week its intention to “cut off all sales of petrol, diesel and hybrid cars in Norway on 1 January 2024”.
While the upcoming announcement is a big symbolic move for the automaker, it’s also a reflection of where the Norwegian new car market is heading.
Norway is aiming to stop the sale of new passenger cars with internal combustion engines (ICE) by the end of 2025.
Norway has led the world in the adoption of electric cars thanks to generous incentives, including exemption from sales taxes, reduced annual registration fees, tax concessions, and free entry to toll roads and congestion pricing zones.
It should be noted Norway is a highly successful exporter of oil and gas, the production of which is largely controlled by the state.
Figures from the US Energy Information Administration indicate Norway was the world’s 11th largest oil producer in 2021. The CIA World Factbook states hydrocarbon extraction accounts for around 12 per cent of Norway’s gross domestic product (GDP) and 37 per cent of all exports.
So far in 2022 electric vehicles have accounted for around 88 per cent of new car sales. They make up around 80 per cent of Volkswagen’s sales in Norway this year.
According to Best Selling Cars Blog, to the end of July Volkswagen (7768) was Norway’s second-best selling brand behind Tesla (8107) and ahead of BMW (5551).
Volkswagen’s most popular car is the ID.4 (4960), which is the country’s second favourite car, well behind the Tesla Model Y (6168), but ahead of its platform-mate, the Skoda Enyaq (3412).
The ID.3 (776) is 28th overall, while the recently introduced ID.5 (438) is ranked 45th. Pre-orders for the ID. Buzz are strong, with Norway (3400) leading the way for the retro-infused people mover and van.