On behalf of NAF, Oslo Economics has conducted a competition analysis to find out what it takes for the electric car to be competitive on the Norwegian market in the short and long run. The analysis is requested since the number of EVs is about to reach 50 000, which is the threshold for government guarantee of EV benefits.
The analysis shows that the EV with today’s features covers transportation needs, partly or entirely, for some consumers. Thus, for some consumers the EV represents a substitute for cars on fossil fuels, given the current benefits. Moreover, the analysis shows that the EV is probably not competitive without these benefits. It is therefore recommended to await liquidation of benefits until the gap between EV and fossil fuel cars is closer when it comes to price, features and risk. One should particularly follow the technological development of batteries, the residual value, features such as reach, size, selection and design. Before liquidation of benefits, one should also make sure that EV market has a sufficient number of providers in each market segment, to ensure an effective competition in the market.
