– many people think twice before buying a new car.
The pace of new car sales in Norway suggests that many do not dare to count on economic booms anytime soon. February ended with 7,380 first-time registered new passenger cars – slightly fewer than in February 2023. Two months into 2024, new car sales are far below “normal years”.
Last year saw low new car sales, ending with just under 127,000 new passenger cars. For many, the road to buying a new car is still long.
Several interest rate increases, high prices for food, electricity and other goods mean that people have to prioritize strictly. The first two months of the year show that many people still think twice before buying a new car – which is often the biggest investment after housing, says director Øyvind Solberg Thorsen of the Road Information Council (OFV).
Cooler new car market Although new car sales in January and February this year, a total of 12,502 new passenger cars, are above the same period in 2023, the figures are still low over time. Normally, new car sales in these months have been close to 20,000 new passenger cars.
New car sales in January 2023 were the lowest ever for that month, with just over 1,800 new passenger cars. January this year showed a slight increase, but the February figures are slightly lower than last year. So new car sales are far from healthy. We see cautious signs that the economy will improve, but now it is no longer the big and expensive cars that dominate the sales figures, says Solberg Thorsen, and points to the Top 10 list so far this year.
The smaller cars are coming The new cars most people buy have “shrunk” to what we can call normal family cars in reasonable price ranges. People simply choose smaller and more affordable cars than 2-3 years ago. And in the future, the electric “small cars” will come in full force, and that will affect the choice of car for many, he says.
Everyone wants an SUV In both Asia and Europe, car production is increasingly turning towards smaller cars. This is also becoming clearer here at home. At the same time, SUVs are a car type that is increasingly being chosen. These are cars that tend to have high ground clearance and seating position, relatively good space, reasonable trailer weight and most often with four-wheel drive.
– So far this year, around 75 per cent of all new cars are SUVs. We have never seen such a high number before. But this type of car is no longer just big and towering. In Norway, medium-class SUVs dominate, and more than 9 out of 10 new SUVs are electric cars, says Solberg Thorsen.
Now the 2025 target is less than a year away, and by then all new passenger cars must be zero-emission cars.
– The share of electric cars now amounts to just over 90 per cent, and in that sense we are on track. But whether the target will be met 100 per cent is uncertain. We believe that plus or minus 95 percent by the end of 2025 is more likely, simply because someone will always need a petrol or diesel car in this challenging country. Everything indicates that 9 out of 10 new cars in 2024 will be electric cars, he says.
Low order reserve The new car market has changed considerably in recent years in terms of offers and choice of brands and models. Many new ones have arrived, more are on the way and car buyers choose differently than before.
– It is special that a single brand, which is relatively new in Norway, now has a quarter of the market alone. But there are many competitors on the field, and the market can change. It is reasonable to believe that several new cars will be launched this year and next year that could change the top ten list we have today, says Øyvind Solberg Thorsen, who points out that so far this year is low order intake at car dealers, and that the battle for new car buyers is intensifying.
Four out of 10 vans are electric Sales of new vans in January and February have increased compared to the same period last year. So far, there are 4,040 new vans registered for the first time – 43.9 per cent more than last year. The share of electric vehicles among new vans is also on the rise, and was almost 40 per cent at the end of February. The diesel share amounts to approx. 60 per cent, while petrol-powered vans are disappearing.
– Range, price and important features such as good load capacity are still a little too poor for sales of electric vans to take off completely. It is moving in the right direction, but there is still a lack of a good enough selection of electric vans that have the right characteristics to further accelerate the sale of electric vans, says Øyvind Solberg Thorsen.
Source: OFV