September 10th,  2021 Article

The EV Path to the Electrified Future.

As the automotive industry gears up for a shift to electric vehicles, EV momentum is on the upswing, with a record number of almost 100 pure battery electric vehicles set to debut by the end of 2024.1

Several factors are accelerating the move to EVs in the U.S., including growing EV consumer interest, and bipartisan support of a sweeping bill under consideration which includes more than $70 billion for EV-related improvements.2

A record number of almost 100 pure Battery Electric Vehicles (BEVs) models are set to debut by the end of 2024.

To ultimately lift EV sales, a commitment to traditional and less-traditional incentives throughout the life of the vehicle appears to be driving success.

Norway and China: A Tale of Two Countries.
Norway, a nation that has long leveraged a variety of incentives, provides an intriguing blueprint for motivating EV sales. Through collaborative and creative incentive efforts, their EVs captured an enviable market share.

Norway’s EV volume grew
exponentially due to selectively
applying — and adding — incentives.1

2014 TO 2019

  • Toll road fees cut in half
  • 40% company car reduction
  • Ferry fare reductions
  • Reduced parking fees
  • Exclusive EV road access
  • No purchase or import tax
  • Free municipal parking
  • Access to bus lanes

Norwegian EV buyers enjoy incentive benefits both at purchase and over time, with many incentives — such as being able to use bus lanes and free charging — extending for the life of the vehicle. Importantly, these incentives exist on both a federal and local level. Other EV incentives include capping ferry fares, parking fees and tolls at 50%, cutting the company car tax in half, eliminating the annual road tax, and offering additional incentives for buyers scrapping their fossil-fuel vans when converting to a zero-emission vehicle.

China, unlike Norway, has limited its incentives to sales. With a $60 Billion investment to support the EV industry, it became the world’s largest EV market, and then concluded it could phase out incentives.3 The result: EV sales first slowed, then plummeted during the pandemic, dropping a dramatic 54% in January and a greater 77% in February 2020.5

A Time-Tested Lesson in Market Economics.
The Norway and China case studies show that incentives are necessary, and when strategically applied throughout the purchase and consumption process on federal and local levels, they drive the difference.

The Objective Power of Science.
Since our founding over four decades ago, our proven, scientific approach to planning has continued to improve and evolve. It’s an approach that stays ahead of the technological curve to help OEMs improve the performance of their dealership networks and continues to be the industry standard.

Although the automotive industry is shifting its focus to EVs, our focus has never wavered. We keep our finger on the pulse of the business, carefully watching the market shifts and trends to help our clients plan and prepare for whatever the future may bring.

If you’d like to talk to someone at Urban Science about your EV strategy, call or email me. And let us show you how we can apply the power of science to your challenges.

Simon Bradley
Global Practice Director – Network, Urban Science Applications, Inc.

  1. Automakers Are Adding Electric Vehicles to Their Lineups. Here’s What’s Coming,
  2. Here’s What is and isn’t in the New Bipartisan Infrastructure Bill.
  3. More People are Warming Up to To Electric Cars Than You Realize, ,
  4. Norwegian EV Policy: Norway is Leading the Way for a Transition to Zero Emission in Transport,
  5. China is Rolling Back the Subsidies that Fueled its Electric-Vehicle Boom,

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