Why Norway Thrives While Europe Struggles: Škoda CEO’s Insight

by Chief Editor

Headline:
Norway’s Electric Vehicle Revolution: A Tale of Multiple Factors Beyond State Support

Subhead:
While state backing plays a role, cheap electricity and smart policies also drive Norway’s EV surge, says Škoda boss.

Article:

Norway has surged ahead in the transition to electric vehicles (EVs), with 90% of new car sales being electric in 2021. While other European nations, including Germany, lag behind, the reasons for Norway’s success are more complex than simply state support.

In an interview with journalists, Škoda CEO Klaus Zellmer shared insights into Norway’s electric mobility success story, suggesting that a combination of factors, not just government subsidies, contributed to the nation’s EV boom.

"Norway has shown that a mix of measures, not just state support for EV purchases, is vital," Zellmer said. Other crucial factors include exemption from taxes for EV owners, high registration fees for internal combustion engine vehicles, and a well-developed charging infrastructure.

But the most significant factor, according to Zellmer, is the cost of electricity. With electrical energy prices ranging between 10 to 16 cents per kilowatt-hour, Europe currently cannot compete with Norway’s attractive power prices.

The German publication Focus, which originally reported the news, noted that while Volkswagen, Škoda’s parent company, grapples with high costs, Škoda thrives due to favorable production conditions in the Czech Republic and customer-focused models like the newly launched Enyaq electric SUV. With prices starting from €33,900, the Enyaq has already received 20,000 pre-orders. From 2026, Škoda will introduce the Epiq model, offering even more affordable electric mobility, with a base version priced at approximately €25,000.

As other countries strive to replicate Norway’s EV success, they would do well to consider the broader spectrum of policies that create a supportive ecosystem for electric vehicles, with electricity costs playing a pivotal role.

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