How long will new electric car purchase incentive programs be needed?

norway ev incentives extended 31310464  group of people waving norwegian flags in back lit
rawpixel / 123RF Stock Photo
Norway is the top electric vehicle (EV) market in the world. Relative to its population, the Scandinavian country has both the greatest proportion of electric vehicle new car sales and the highest overall EV market share. That’s great progress and proof the shift to zero emissions vehicles is working. So why has the country decided to extend a major tax incentive to 2020?  The government decision was reported in Norwegian News on Tuesday, according to Electrek.

When Norway’s original EV incentive plan was introduced in 2013, the deal was that the purchase of an EV would involve no vehicle taxes or value added tax (VAT), a tax commonly added to goods bought and sold in the European Union. In Norway, the VAT on cars is a hefty 25 percent. The original plan was for the incentives to extend only to the first 50,000 electric vehicles purchased — that way early adopters would get a boost but the government wouldn’t lose out on a sizable revenue source in the long term.

In September, 2016, 28.8 percent of new car sales in Norway were EVs (not including hybrids), and electric vehicles have an overall 19 percent market share. Both figures far exceed those of any other country. EV sales are continuing at such a high rate the total number is expected to exceed 100,000 vehicles by the end of 2016. The incentive program as originally set should therefore be over. But that’s not going to happen.

Norway is focused on reducing vehicle emissions for cleaner, healthier air. The country’s faster-than-expected EV adoption rate gives it a reasonable chance of meeting its emissions goals, especially if it can reach 100 percent all-electric new car sales by 2025. In support of that ambitious plan, the VAT exemption will remain in place until 2020.

One justification for the incentive extension is that more affordable all-electric cars are coming but haven’t been available so far. The Tesla Model 3 and the Chevy Ampera E (the European version of the Bolt EV) are both on the horizon. Those who opposed continuing the EV incentive argued it only helped wealthy people who could afford Teslas (which comprise 14 percent of Norway’s EVs at this time).

As other countries including the U.S. consider adding or extending financial incentives to support all-electric vehicle purchases, Norway’s example shows that generous incentives work.

Computing

Get up to $200 off the MacBook Pro in Best Buy’s Black Friday sale right now

If you don't need Apple's controversial Touch Bar on the MacBook Pro, Best Buy is offering a Black Friday sale on the non-Touch Bar models. The sale is happening right now and subtracts as much as $200 off of Apple's notebooks.
DT Daily

DT Daily: iPhone X problems, Single’s Day sales records, and more

On the 15th episode of DT Daily, Digital Trends' live morning show, Greg Nibler and Marie Pardo-Garber examined the news of the day, including iPhone X screen problems, Alibaba's record-setting day of sales, and more.
Deals

REI’s annual gear sale brings you 30 percent off top outdoor brands

Starting today and running until Monday, November 19, REI is hosting their annual Gear Up Get Out sale. Each day, you can receive up to 30 percent off exclusive items, with other doorbuster deals happening throughout the sale.
Deals

Surround sound on the cheap: The LG 4.1 channel soundbar system is now just $197

Surround sound is a great way to enhance your home entertainment, but a full speaker setup can get expensive. If you're looking for a simpler and affordable home theater solution, this LG 4.1 channel soundbar system is now on sale for just…
Cars

Where are you going this weekend? These 5 off-road vehicles say 'anywhere'

The body-on-frame SUV is going extinct, but there are still several options for buyers looking to skip the asphalt. To help you sort the good from the bad, we've rounded up the best off-roaders currently available.
Cars

From Rolls-Royce to Lamborghini, these are the most expensive cars in the world

If you recently discovered an oil reserve in your backyard, you probably have some extra cash to spend. Look no further, because we’ve rounded up the most expensive cars in the world.
Cars

Lime’s first carsharing service motors into Seattle this week

Lime may be better known for its app-based bike and scooter rental services, but in Seattle, Washington this week it's launching its very first carsharing service, similar to Car2go and Zipcar.
Cars

Land Rover shows its artsy side by previewing the 2020 Range Rover Evoque

Land Rover made life-sized wire sculptures to preview the 2020 Range Rover Evoque. The all-new SUV will make its debut during a private event held in London on November 22, and deliveries will begin in 2019.
Deals

These headlights have 4 color settings to help save lives under all conditions

Boslla headlights are an easy-to-install solution to achieve all-weather lighting for your vehicle. After a quick ten-minute install, these lights have up to four settings to get you through anything.
Cars

Car parts maker ZF is using drones to deliver components to its factories

ZF recently became the first entity in Germany to receive approval to use drones to deliver spare parts, and the company now uses them to deliver parts from its central warehouses to its workshops.
Cars

The DBX SUV will go where no Aston Martin has gone before

When it launches in 2019, the Aston Martin DBX will be the British automaker's first SUV. In the meantime, camouflaged DBX prototypes will undergo strenuous testing around the world.
Cars

Ford teams up with Walmart to study consumer response to autonomous delivery

Last week it was Ford and VW, and this week Ford and Walmart are signaling a desire to work together on autonomous vehicles solutions. Ford and the giant retailer will study consumer reactions to self-driving delivery vehicles.
Cars

Our favorite fuel-efficient cars are as frugal as they are fun

You don't need to opt for a hybrid or an all-electric ride in order to achieve good fuel economy. These vehicles pack both performance and style, whether you're in the market for a luxury sedan or a game-changing pickup truck.
Cars

Out of juice? Learn how to jump-start a car with this quick guide

Jumping a car is a simple procedure, but not everyone knows how to properly do so. To make things easier, we've put together a quick-hit guide on how to fire up your vehicle using jumper cables and a second power source.