KATHMANDU: Norway has further cemented its position as a global leader in electric vehicle (EV) adoption, with nearly 90% of new car sales in 2024 being fully electric.
In one recent month, that figure soared to 97%—far ahead of countries like the United States and China.
One important reason behind this transformation is continued government support. Since the 1990s, Norway has offered generous incentives to EV buyers, including exemptions from import taxes, registration fees, and the 25% value-added tax (VAT). EV owners also enjoy different benefits like free tolls, discounted ferry fares, and cheaper parking.
The Norwegian government funds these incentives through its $1,700 billion sovereign wealth fund, which is primarily funded by oil and gas revenues. Between 2007 and 2025, the country expects to forgo around $62 billion in tax revenue to support EV adoption.
Norway also invested early in building a robust charging infrastructure, including in remote areas, with initial subsidies from the government. Today, the private sector builds most new charging stations, thanks to rising demand. Since Norway generates most of its electricity through hydropower, its EV ecosystem is one of the most sustainable in the world.
Since the 1990s, Norway has offered generous incentives to EV buyers, including exemptions from import taxes, registration fees, and the 25% value-added tax (VAT).
Despite its success, Norway has been grappling with several issues like reduced battery performance in winter, difficulties with charging apps and environmental concerns linked to copper mining for EV batteries.
Lessons for Nepal and Beyond
Norway’s experience shows that with a smart mix of government policy, economic incentives and clean energy infrastructure, large-scale EV adoption is not only achievable but effective, even in harsh climates.
This model is especially relevant for Nepal which generates nearly all its electricity from clean hydropower. Nepal’s budget for the upcoming fiscal year has prioritized clean mobility. It not only kept taxes unchanged, but also announced incentives for the private sector to produce DC fast chargers at home.
EV adoption in Nepal already outpaces much of South Asia. With sustained policy support and continued infrastructure development, Nepal is well-positioned to become a regional leader in electric mobility.
