Zero VAT has been an important contribution to skyrocketing electric car sales in Norway. But it is not at all certain that it will last much longer. It is now clear that the Labor Party, the Socialist People’s Party and the Center Party want to introduce VAT on electric cars that cost more than NOK 600,000.
In other words, if there is a change of government in the autumn, there is a high probability that a number of electric cars will be noticeably more expensive.
Norway’s largest car importer, Harald A. Møller, reacts and warns against the red-green electric car policy.
– If electric car VAT is introduced prematurely, at a level that also affects ordinary Norwegian families across the country who want to choose electric, then the goal of only selling electric cars in 2025 is jeopardized, says Ulf Tore Hekneby, CEO of Harald A. Møller AS .
Affects the districts
– It is a paradox that a possible red-green government constellation can become a brake on the road to the 2025 goal, and that they affect car buyers in rural Norway. We understand that the intention is to do something about the distribution policy, but the consequences will be that it will be more attractive to choose fossil rather than electric in several segments, says Hekneby.
– Ulf Tore Hekneby is the managing director of Harald A. Møller.
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He believes that the parties must consider raising the proposed entry point from 600,000 to 800,000 kroner, and that they also wait with the introduction until 2023.
– The electric car is facing a breakthrough in the districts, where families with children with a great need for cars in everyday life can now choose good fully electric alternatives. A good picture of this is that electric cars are becoming an increasingly common sight on Norwegian campsites. The models that are the reason for this are among those that can be affected by the policy the red-greens will now go to the polls for, Henkeby believes.
The Center Party wants to tighten up: Many electric cars can become more expensive
– Harald A. Møller is an importer of the passenger car brands Volkswagen, Audi, Skoda, Cupra and Seat, which have all rolled out offensive electric car initiatives. Here is the new Skoda Enyaq.
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May affect the supply of electric cars
Due to the solid electric car sales in recent years, the Norwegian market has been a priority for many car manufacturers. Norway has often been awarded completely new electric car models very first.
However, Henkeby believes this could turn around, if sales slow down.
– Through the pandemic, several large countries in Europe have introduced strong electric car incentives, and at present the demand is greater than the production of electric cars. Traditionally, the Norwegian market has been a priority, but with the introduction of VAT in Norway, we risk that producers prioritize markets other than the Norwegian, Hekneby concludes.
VAT on electric cars will halve sales
– The Audi e-tron 55 is among many models that will be more expensive if VAT is introduced.
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We debate electric car VAT in BroomPodden – see the feature here:
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