Sales of plug-in hybrids have had a much smaller market penetration than pure electric car sales. Plug-in hybrids are not eligible for the same tax exemptions and other government incentives enacted for electric cars. Because the Norwegian tax system levies higher taxes to heavier vehicles, plug-in hybrids are more expensive than equivalent gasoline and diesel-powered cars due to the extra weight of the battery pack and its additional electric components.[27] Beginning on 1 July 2013, the existing weight deduction for conventional hybrids and plug-in hybrids of 10% was increased to 15% for PHEVs.[28] The weight deduction was increased to 26% effective since January 2015.[55] This fiscal incentive combined with a broader range of models available in the market resulted in record sales of plug-in hybrids in 2015, with almost 8,000 new units registered, up from about 1,700 in 2014. The plug-in hybrid market share rose to 5.2%, up from just over 1% in 2014,[56] and from 4.2% in September 2015 to 13.9% in September 2016.[3][57]. . . .
For the 2017 National Budget, the Government proposed to extend the VAT exemption for zero-emission vehicles until 2020. It also put forward a national rule to keep a maximum tax rate of zero-emission vehicles equal to half the value charged to conventional cars. The budget proposal also included an adjustment to exempt plug-in hybrids from the higher taxes levied to heavier vehicles, and instead, to charge taxes based on their fuel economy under the New European Driving Cycle (NEDC). Until 2016, all plug-in hybrids had a weight allowance of 26% regardless of their all-electric range or fuel efficiency.[74][75]. . . .
Plug-in hybrid segment growth to the expense of pure electrics[edit]
Registration of new and used imports by type of plug-in electric vehicle between 2013 and 2018.[2][3][4][5][6]
The plug-in hybrid segment outsold all-electric cars for the first time ever in the month of April 2016.[183] Registrations of new passenger plug-in vehicles during the first half of 2016 totaled 11,744 all-electric cars and 10,338 plug-in hybrids, with the all-electric car segment reaching a market share of 15.1%, down from 18.4% in the same period in 2015, while the plug-in hybrid segment reached a record 13.3%, up from 4.5% in 2015.[184] These sales results for the first half of 2016 revealed a new trend in the Norwegian plug-in electric market. After years of spectacular growth, the market share of all-electric cars suffered a decline over the previous year, while the plug-in hybrid segment experienced significant growth.[57][71][184] In terms of sales volume during the first half of 2016, for the first time plug-in hybrid registrations (10,338) were very close to all-electrics (11,744).[184] Accounting for registrations during the first three quarters of 2016, plug-in hybrids grew nearly three-fold from the same period in 2016.[57][71][167]
According to the Norwegian Electric Vehicle Association this new trend is the result of uncertainty created by the government about the future incentives for zero-emission vehicles.[184] Also, buyers have more models to choose from, as the number of plug-in hybrid cars available in the market has increased significantly, as of August 2016, there were 19 plug-in hybrid models in the market and 15 all-electric cars.[59] Accounting for cumulative registrations between January and July 2016, four plug-in hybrids were listed among the top 10 selling plug-in electric cars, with a plug-in hybrid ranking for the first time ever in first place. As the trend of stronger plug-in hybrid sales continued in July 2016, the split between battery electric cars and plug-in hybrids almost reached parity, with 12,855 electric cars (51.3%) registered in the first seven months of 2016 compared to 12,203 plug-in hybrids registered in the same period (48.7%).[59] In September 2016, the Norwegian Electric Vehicle Association proposed to the government to change the rules in the 2017 budget to limit the incentives for plug-in hybrids with insufficient all-electric range and luxury models featuring an electric powertrain with a small battery with the sole purpose of increasing power output. . . .[57][74][75]