Top-ranked EV market Norway invests in new technology
When President Donald Trump courted controversy by using a vulgar term to describe Haiti and Africa, calling for more immigrants from countries like Norway instead, perhaps he didn’t realize that most Norwegians are probably more inclined to say thanks, but no thanks.
Although immigrants from Norway to the United States amounted to 800,000 people between 1825 and 1925, in 2016 only 1,114 Norwegians moved here – compared to the 1,603 Americans who pulled up stakes and migrated to Norway.
Blessed with spectacular scenery amid a mountainous, albeit wintery environment, the Nordic nation’s citizenry takes top honors in the World Happiness Report. They enjoy the globe’s fourth-highest per-person gross domestic product, near-full employment levels, universal health care and a life expectancy averaging 81.8 years; in the U.S. it’s 79.3 years.
Norway’s largest industry is petroleum production, but they burn very little of it in their vehicles – preferring pristine and pollution-free fjords rather than gas-fueled Fords and other internal combustion models.
On a per-capita basis Norway ranks No. 1 in the world for the adaptation of electric vehicles, trailing only China, the U.S. and Japan in sheer numbers. EVs account for more than half of the 2.7 million-plus cars on Norway’s roads.
Charged via an ample supply of clean and green hydroelectric power connected to an extensive network of quick-and-easy plug-in stations, EVs have become practical and popular for a population of 5.2 million people.
“Norway is a test bed for new models,” says Heming Bjorna, senior automotive segment specialist for the U.S. Commercial Service in Oslo. For EV-ready American parts and service providers, “This could be a market opportunity.”
Dealership bays are commonplace, but “there are no dedicated EV repair shops as far as I know,” he reports. Norwegians expecting lower EV repair costs because of fewer moving parts are looking askance at pricy maintenance fees.
“This may be ironed out as the market gets more mature,” says Bjorna. “Since Norway is a pioneer when it comes to adaptation, lack of access and supply (for parts and services) can be a problem at times. Norway is a prioritized market by most EV manufacturers, but it is nevertheless less-streamlined than traditional value chains. The wish list for accessories for EVs is very long for many EV owners, ranging from tow bars to ski racks and more.”
The U.S. Commercial Service provides assistance for making industry connections and navigating Norway’s business climate, and Bjorna also encourages you to reach out directly to the nation’s parts importers and repairers.
“There are a handful of independent service center chains in the Norwegian market, such as MECA and Mekonomen, Snap Drive, Automester and Sjekkpunkt. These are often referred to as ‘independent service centers’ as opposed to the ‘authorized’ or ‘official’ shops operated by the dealers,” he explains.
BilXtra and Torshovbil are auto parts and accessories chains that are based in Oslo, and Biltema is headquartered in Sweden with additional outlets in Norway, Finland and Denmark.
With “bil” meaning “car” in Norwegian, Norway, Sweden, Finland and Iceland are all closely aligned on both a cultural and economic basis.
Göteborg, Sweden (known also as Gothenburg) is home to FKG, the Scandinavian Automotive Supplier Association, which has more than 350 member companies and is affiliated with the European Association of Automotive Suppliers.
“Norges Bilbransjeforbund,” the Norwegian Motor Trade Association, serves dealers and repair shops; the American Car Club of Norway hosts aficionados of U.S.-produced vehicles; and there is “Norsk elbilforening,” the Norwegian Electric Vehicle Association.
In 1905 Norsk Hydro was founded in Oslo to produce fertilizer amid widespread famine when Norway was one of the poorest countries in Europe. It eventually became a global supplier of aluminum to Ford, General Motors, Volkswagen, BMW, Daimler, Renault, PSA, Toyota and Honda. Its presence in 40 countries includes locations in Baltimore; Zeeland, Mich.; Commerce, Texas; Henderson, Ky.; and Garden City, N.Y.
Established in Kongsberg, Norway as a defense contractor that shifted into making parts for Volvo in 1957, Kongsberg Automotive produces interior, powertrain & chassis and specialty products. Now encompassing 30 facilities in 18 countries it has operations in Novi, Mich.; Grand River, Ohio; Suffield, Conn.; Easley, S.C.; Willis, Texas; Laredo, Texas; Benton, La.; and Swainsboro, Ga. along with several Mexican maquiladoras in close proximity to the U.S. border.
In for the long haul
In December Tesla became Norway’s best-selling nameplate.
“What seemed like a new and immature market a short time ago is about to become a new and important chapter in the history of cars. Right now, Tesla is in the driver’s seat for accelerating the transition to sustainable transportation – and we are excited to do our part in enhancing the driving experience,” according to Kongsberg technology & market analyst Morten Gunnerud, reflecting on the company’s line of EV-centric comfort and performance systems.
He likens this scenario to the historic rise of VW’s Bug. “There was clearly a desire for a cheap, simple car to be mass-produced more than 70 years back. With more than 21 million built between 1938 and 2003, the Beetle is the longest-running and most-manufactured car of a single platform ever made – and it changed the history of cars,” says Gunnerud.
“It looks as though Tesla’s Model 3 is about to repeat the success story of the VW Beetle, hence paving the way for a new generation of green vehicles commercially available for the masses,” he observes.
“In Norway, this trend is also supported by actual sales figures,” Gunnerud points out in reference to Tesla’s acceptance among the country’s motorists and the automaker’s compliance with the European Union’s 2021 emission reduction targets for new cars.
“We are witnessing something completely new in terms of branding and sales. Tesla is not pushing cars through traditional distribution channels. They are sophisticated in the way they handle sales online, adding brand value by continuous software updates in the cars and using different methods in the approach towards the customer,” he notes. “This makes them closer to consumer and technology brands like Apple and Samsung than to competitors in the auto industry.”
Production of Tesla’s EV tractor-trailer rig is not expected to begin until 2019, yet Asko Norway, the nation’s largest grocery wholesaler, placed an order for 10 of them at $190,000 apiece just hours after their availability was first announced. Asko’s shipping managers are enticed over a predicted 20 percent lower cost-of-operation when compared to a chugging diesel cab and an anticipated ability to efficiently power up Norway’s notoriously steep mountain grades.
“We have an electric truck today from a Dutch company that we have had for almost two years. We think that Tesla is the one who has come the furthest with the technology so far,” says Asko CEO Tore Bekken, speaking to Norway’s E24 News outlet.
Bekken still has questions about the vehicle’s ultimate performance upon completion, and it needs to meet Norway’s tough regulations, but he expresses interest in being in for the long haul and augmenting his existing fleet of 600 trucks.
“We are working towards a goal of using only renewable energy. We think that electric and hydrogen-powered vehicles are the future,” Bekken asserts. “We are curious and excited and we hope this will trigger other manufacturers to bet on electric or hydrogen trucks in the future.”
Plans are afoot to deploy Tesla “Megachargers” throughout Norway that are capable of delivering 400 miles of range per 30 minutes of charging time.
Pathways to the future
The nation’s highly educated and progressive-thinking populace has long prided itself on being quite adept at domestically developing and then exporting the latest in technological innovations.
“We strongly believe that what we learn here can be applicable to other countries,” says Ole Henrik Hannisdahl, managing director at Grønn Kontakt (“Green Contact”), a Kristiansand, Norway-based provider of the nation’s omnipresent public EV charging stations that also installs networks throughout Scandinavia.
Addressing a recent bustling industry convention, Hannisdahl recounted a 2009 EV conference that was “more or less held in a shed outside the hotel, and drawing attention from about 10 people having visions about the future.”
Currently, though, “It’s quite amazing to sit here and experience this. It’s been an interesting journey, and it’s far from finished. We’re in the middle of it. We’re starting to get some pathways to the future,” he says.
“We invest because we think it’s a profitable business. We also believe strongly that it has to be profitable in order to scale,” says Hannisdahl. “We can show that charging can scale commercially. We’re essentially telling the rest of the world that if you manage the transition into EVs you will have a customer-driven charging market. The good news is that in Norway there are actually customers.”
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