Volkswagen to Cease Selling Gas-powered Cars in Norway from 2024

Norway, the global leader in electric vehicle adoption, is on the verge of witnessing the end of gas-powered car sales by Europe's largest automaker, Volkswagen. Møller Mobility Group, Volkswagen's importer in Norway, has confirmed that they will cease accepting orders for gas-powered cars by December 2023 and will exclusively focus on selling electric vehicles in the country from 2024 onwards.

This decision aligns with Norway's ambitious plan to ban all gas-powered vehicles by 2025, making it the earliest such ban in the world. The country has already achieved an impressive 20% share of electric vehicles in its overall passenger car fleet, and an astounding 90% share in new car sales when plug-in hybrids are included. The Norwegian government has provided incentives for electric vehicle purchases, including tax exemptions, free parking, and access to bus lanes.

During the past 10 years, Volkswagen has imported over 102,000 electric vehicles to Norway, with its ID.4 model ranking as the second best-selling car in the country. The ID.3 model holds the eighth position, while Tesla's Model Y leads the market with over 15,000 units sold in the first half of this year, capturing more than 20% of the market share.

As Norway continues to witness an increase in electric vehicle adoption, the government has started phasing out certain incentives for new energy vehicle purchases. Additionally, there is a concerted effort to reduce the overall number of private cars on the road, including electric ones. The promotion of walking, cycling, and public transportation is encouraged as alternatives. Beginning this year, a 25% value-added tax is imposed on vehicles priced above 500,000 Norwegian kroner (approximately $57,000), and the tax rate escalates with the price of the electric vehicle.