http://www.independent.co.uk/life-style/motoring/motoring-news/saving-money-not-the-environment-is-driving-norways-electric-car-boom-9537737.html
Saving money not the environment is driving Norway's electric car boom
by Jamie Merrill   15 June 2014

[image] With a population of only five million, the country now has 35,000
battery-powered vehicles on its roads

Stand on many Oslo street corners and you'll notice something odd. Cars
swish past, driving in the bus lanes. And they make no noise. The usually
obedient Norwegians have not succumbed to breaking traffic laws; rather, the
country is in the grip of an electric car boom.

Norway, with a population of only five million, now has on its roads 35,000
electric vehicles (EVs), which also represent 14.5 per cent of new vehicle
sales. Figures show another spike last month with 1,346 sales. And one of
the most prized benefits of ownership is the right to drive in bus lanes.

In a central Oslo café, half a dozen electric cars parked up nearby, Marina
Maneas Bakkum of Nissan, manufacturer of the electric Leaf, a five-seat
family car, explains: "Our customers here aren't early adopters or even
necessarily environmental evangelists, though that's important. They are
ordinary working people."

The biggest attraction for many are tax breaks, incentives and perks that
electric car drivers receive, said Christina Bu of the country's Electric
Vehicle Association. "The small, plastic-box electric cars are a thing of
the past," she said. "The uptake has nothing to do with the Norwegian psyche
or love of the environment, it came when people started to realise there
were huge savings to be made."

[image] Norway’s 35,000 electric cars use a national network of charging
points Norway’s 35,000 electric cars use a national network of charging
points (Alamy)

Those benefits are incredibly generous, including exemption for VAT and car
tax as well as access to bus lanes, free parking, free toll-road use, free
ferries and employment tax benefits. A recent study suggested this equals as
much as £1,000 a year in savings over the life of an EV.

It is a situation which makes the country's Conservative party environment
minister Tine Sundtoft very proud. She told The Independent on Sunday that
Norway was "blessed with almost 100 per cent renewable electricity
production" so electric transport "makes a lot of sense". There are
concerns, however, that the government may not renew the generous subsidies
when they expire in 2017.

For now, though, the friendly political atmosphere has resulted in a sales
boom. In March, Tesla's new Model S sedan set a Norwegian sales record of
1,493, making it the most popular car in the country, with new models such
as electric VW Golf expected to add to the boom. Tesla, which was founded by
eccentric PayPal billionaire Elon Musk, is unique in that it operates its
own supercharger network, which is dotted along Norway's spine and offers
300 miles of range from a 30-minute charge, making long-distance travel
possible.

At a Tesla station outside of the town of Gol, local newspaper journalist
Kjell Osterbo and his wife were using the superfast charger for the first
time on a trip back from Oslo to their hometown of Bergen. Mr Osterbo said
that the £60,000 car was an "impulse buy" after a "dinner party
conversation". Mr Osterbo, who is economics editor at Bergens Tidende,
added: "The tax regime is incredibly friendly to electric cars here in
Norway. There's an element of wanting to help the environment and
understanding that we all need to come together to act, but the fact you
don't pay any tax on it at all is massive."

[image] The Tesla Model S (Alamy)
Yet despite the glamour of the new Model S, it was the Nissan Leaf that
really jump-started the boom. Priced from around £16,000, it costs a third
of the price of the Model S, and is still the most common in some areas of
west Oslo. Last year alone Nissan sold 4,604 electric cars, more than
doubling its 2012 sales.

Not everyone is convinced the country has the right approach, though. Bjart
Holtsmark, an economist at the Norwegian government statistics bureau, said:
"My basic concern is that the Norwegian EV policy means that there are
almost no private driving costs," he said. "Therefore, the policy is leading
to more car driving at the expense of bicycling and public transport.

"If the goal of the EV policy is to have many EVs on the street, the
Norwegian policy is a success. However, it is a basic misunderstanding that
increasing the number of EVs is a goal by itself.

"We do not know to what extent the many EVs in Norway have replaced
traditional cars. If the EVs to a large extent have come in addition, the
result is higher CO2 emissions, not lower."

Unsurprisingly, environmentalists disagree. "For a country of just five
million people it's fantastic that we are making an impact on the
international car industry," said Frederic Hauge, founder of the country's
Bellona Foundation, an environmental direct action group.

"It's an example all European governments should be looking at to tax cars
according to their CO2 emissions, so the higher the emissions, the higher
the tax."
[© independent.co.uk]




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