Chinese Electric Vehicles Selling Well in Non-Tariff Norway

Sales of Chinese electric vehicles have shot up in Norway and now account for almost 10% of new car sales in the country.

The wealthy Scandinavian country is far ahead of most countries in the switch to electric vehicles, and the pick-up in sales of Chinese cars – revealed in data from the country’s road federation (OFV) on Thursday – has come in just give years.

The big difference is that, unlike the European Union and the United States, Norway has not imposed import tariffs on Chinese EVs.

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Brussels and Washington say Chinese EVs benefit from unfair subsidies, which Beijing denies, and Western automakers have warned they could be hit hard by cheap Chinese imports, although there have been doubts if buyers would adopt unfamiliar brands.

In Norway, the combined market share of Chinese manufacturers such as MG (part of SAIC Motor), BYD and XPeng increased to 8.8% last year, up from 5.1% in 2023 and 4.1% in 2021, according to Reuters calculations based on OFV on the top 20 car brands sold.

The first Chinese EV to arrive in Norway, from MG, was shipped only five years ago, in January 2020.

“The Norwegian car market is probably one of the toughest in the world,” Christina Bu, head of the Norwegian EV association, said. “There’s fierce competition.”

Starting in November 2024, the EU increased import duties on Chinese EVs to up to 45.3%.

“We treat all countries alike,” Norway’s deputy transport minister Cecilie Knibe Kroglund said. The Nordic country is not part of the EU.

The EU’s move followed a decision by the United States to increase import tariffs on Chinese EVs to 100% of their value in 2024 from 25% before.

China became the world’s top car exporter in 2023, selling some 1.2 million EVs worldwide.