TechDogs-"Norway, China Lead EV Adoption As US Gov Subsidy Rollback Met By Mixed Reaction"

Emerging Technology

Norway, China Lead EV Adoption As US Gov Subsidy Rollback Met By Mixed Reaction

By Amrit Mehra

Updated on Tue, Jan 28, 2025

Overall Rating
Over the last few years, the global electric vehicle (EV) market has witnessed a mixed reaction from users and governments.

While some think that they are the way forward, not all are ready to move on from the traditional internal combustion engine (ICE) style. Yet, EVs have shown they bring in a wide range of advantages, particularly in the form of environmental impact improvements.

This is especially true in China, where the increased adoption of EVs has led to notable improvements in the Air Quality Index (AQI) in major cities, such as Shanghai, Guangzhou, and others.

In fact, over 50% of all vehicles sold in China were EVs, making it the largest EV market in the world.

However, it’s not just Chinese users who are boosting the EV market—the country also leads in EV manufacturing.

As per reports, over 80% of all EVs sold worldwide are produced in China.

This includes the vehicles produced by Chinese automaker BYD—which is expected to overtake Tesla as the most-sold EV brand in the world—and other manufacturers such as Ford, Nissan, and Kia, which rely on China for manufacturing or components.

When it comes to components for EVs, it doesn’t get bigger (metaphorically) than batteries. Here too, China enjoys pole position, accounting for 75% of the world’s battery cell manufacturing capacity.

Suffice it to say, China has well and truly embraced EVs—from manufacturing to sales. This is even more impressive considering China is the second most populous country in the world—coming in with a population of over 1.4 billion people.

TechDogs-"An Image Of BYD's Seal Model"
However, it’s not just countries with sheer population numbers that are whole-heartedly embracing the EV industry.

Norway, where the population is a shade over 5.5 million, is on track to become the world’s first country to fully shift to EVs.

As per a report published by the Norwegian Road Federation (Opplysningsrådet for Veitrafikken or OFV), 88.9% (almost 9 out of 10) of new vehicles purchased in 2024 were EVs, where the total number of vehicles sold was 128,691.

This comes as a major increase from 2010, where new EVs accounted for just 1%, as well as 2023’s figure of 82.4%. It represents a major milestone in Norway's ambition to have all new passenger vehicles be zero-emission by 2025.

In Norway though, the top-selling brand was Tesla (18.9%), followed by Volkswagen (10.9%), Toyota (10.6%), Volvo (10.6%), BMW (5.4%), Škoda (5.1%), Hyundai (4.5%), Audi (4.3%) and others. BYD featured at #13 on the list, accounting for 2.1% of all vehicles sold.

The most sold model was Tesla’s Model Y (13.1%), followed by Tesla’s Model 3 (5.6%) and Volvo EX30 (5.6%).

TechDogs-"An Image Of Tesla's Model Y (2025 Version)"
In either case, both countries were able to propel their EV adoption by offering subsidies, which included tax exemptions, discounted tolls, free parking, free charging, and more. China infused $200 billion to subsidize its EV industry and offered similar benefits for the development of batteries, solar panels, wind turbines, and other green technologies.

This is one place the U.S. has fallen back on, as returning President Donald Trump issued an executive order rolling back EV subsidies in the country.

This included ensuring that at least 50% of all new vehicles sold in the country were EVs, a $7,500 subsidy for clean-car purchases, ending waivers for states to adopt zero-emission vehicle rules by 2035, ending EV tax credits, and more.

While this would be enough to rattle U.S. automakers, who were investing big in EV technology, it didn’t phase Rivian’s Founder and CEO, R.J. Scaringe.

This is despite Rivian being a company that doesn’t offer any gas-powered vehicles.

“We spend a lot of time talking about short-term financials, but we’re building a business for the next few decades,” Scaringe said. “So, eh, who cares? It’s going to be a little more challenging, the next couple of years.”

Instead, he’s sure transportation will one day be 100% electric.

His worry though, stems from other countries increasing their lead in the EV sector—particularly China—which have been accelerating their efforts, leaving the U.S. with an underdeveloped EV market.

Do you think the U.S. should rethink its EV subsidy rollback? Do you think China can be knocked off its perch in the EV market?

Let us know in the comments below!

First published on Tue, Jan 28, 2025

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