EV price trends – cheaper than you think?

The battery is the key

The battery pack accounts for 30–40% of the production cost of an electric car. Since 2010, the price per kilowatt-hour (kWh) for battery packs has fallen by over 90%. In 2010, a kWh of battery capacity cost around $1,100. By 2024, the price had dropped below $100 per kWh — a milestone many experts considered the threshold for EVs to become competitive with petrol cars on sticker price without subsidies.

That means a car with a 60 kWh battery — sufficient for most Norwegian buyers — has a battery pack that today costs the manufacturer roughly $6,000 in raw materials, compared with $66,000 twelve years ago.

Norwegian prices: subsidies and taxes

In Norway, the pricing picture is complicated by policy incentives. Electric cars are exempt from value-added tax (VAT) on the first 500,000 NOK of the purchase price — a benefit that can amount to over 100,000 NOK compared with an equivalent petrol car. The one-off registration tax, which is based on weight and CO₂ emissions, is significantly lower for EVs.

The result is that Norwegian EV prices were long artificially low compared with the rest of Europe. As the tax advantages have been adjusted and electricity prices have risen, the picture is more nuanced — but owning an EV in Norway is still affordable.

How does an EV compare with petrol on cost?

Comparing purchase price alone is misleading. The total cost of ownership over the holding period tells a more complete story:

• Fuel: Charging typically costs 20–30 øre per kilometre. An equivalent petrol car uses 1.2–1.5 litres per 10 km, which at 20 NOK/litre works out to 140–180 øre per kilometre — 5 to 7 times more.
• Maintenance: EVs have fewer wear parts. Many owners report 30–50% lower workshop costs over five years.
• Insurance: EVs are insured at roughly the same rate as petrol cars in the same class, sometimes slightly more expensive due to higher repair costs.
• Depreciation: EVs lose value faster than many people fear, but it varies greatly between brands. Tesla and Volkswagen ID models hold their value relatively well.

For most people driving more than 10,000 km per year, the total cost of ownership over five years is lower for an EV than for a petrol car, even without factoring in the tax benefits.

Chinese EVs are driving prices down

The big new development in the market is Chinese manufacturers such as BYD, Xpeng and NIO. BYD is now the world's largest producer of electric cars and is leveraging its massive scale to push costs down. The BYD Atto 3 sells in Norway for around 320,000 NOK — a price that would have been unthinkable for a new EV with those specifications just three years ago.

The EU introduced punitive tariffs on Chinese EVs in 2024 (17–35% on top of the standard duty), partly to protect European industry. In Norway, which is not an EU member, these tariff rates do not apply directly — but Norwegian import agreements partly follow EEA rules. The price pressure from China is nonetheless noticeable.

What will happen to prices going forward?

Analysts broadly agree on three trends:

• Battery prices will continue to fall, but more slowly than over the past decade. Next-generation sodium-ion and solid-state batteries could deliver further step-changes downward.
• EVs and petrol cars will reach price parity by 2027–2030 without subsidies in most segments, according to Bloomberg NEF and other forecasters.
• The used-car market is maturing. As large numbers of older EVs from 2018–2022 come up for resale, used EV pricing will stabilise, making it more predictable to buy second-hand.

Is it smart to wait for lower prices?

The classic dilemma. The answer depends on your situation: if you need a car now, buy now — you will not pay more than market price, and an EV is already a good deal compared with petrol on running costs. If you can wait two to three years, the selection of affordable models will grow and the used-car market will be more mature.

What is not a good strategy: waiting indefinitely. Prices are falling, but the savings on fuel and maintenance tick away every single year you postpone.

Compare today's prices

See prices on all EVs available in Norway on our overview page, and sort by price to find the most affordable options. Use our ownership-cost calculator to compare the total cost of an EV versus a petrol car.