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Norway Moves to End EV Subsidies After Hitting 98% of New Car Sales, as Germany Weighs Targeted Bonus

Policymakers recalibrate incentives to contain costs without undercutting demand.

Overview

  • Norway’s government proposes cutting the EV VAT exemption cap from 500,000 to 300,000 kroner in 2026 (about €26,000) and ending the exemption entirely in 2027.
  • Finance Minister Jens Stoltenberg says the 2025 target is practically achieved after electric cars reached 98.3% of September registrations.
  • The plan also raises the one‑time registration tax on combustion cars by 20,000 to 30,000 kroner, while current EV tax breaks cost roughly €1.5 billion per year.
  • Norway’s EV association warns that a rapid rollback could sway buyers back to combustion models, and the package still requires parliamentary approval where the government lacks a majority.
  • In Germany, SPD lawmakers propose a €3,000 grant for new and used battery‑electric cars up to a €45,000 net price with an income cap, drawing CDU/CSU criticism of price caps and higher taxes on combustion company cars.