The fact that a record 90% share of all new car sales in Norway are electric has failed to make any impact on the country’s oil demand, indicating that hopes of rising EV uptake making an immediate dent in global oil demand are unrealistic. Last year, 82.4% of all new passenger cars sold in Norway were fully electric, up from 79.3% in 2022, according to the Norwegian Public Roads Administration and the Norwegian Road Federation OFV.
Norwegians, like other consumers, are concerned about vehicle range, and many opt for hybrids or gasoline-fueled vehicles to travel longer distances, according to the bank. “Another possibility is that electric vehicles are used for short distances, but Norwegians still rely on fossil fuels to cover longer distances,” UBS said in the note.