Tesla electric cars were the best-selling passenger vehicle for individual consumers in 2022, RÚV reports. This is part of a larger pattern: more than half of new cars sold to individuals in 2022 were electric cars. Tesla did not, however, sell the most cars overall in Iceland. That distinction belongs to Toyota, although cars sold to rental companies accounted for 73% of its sales last year.
Changing patterns and incentives related to energy consumption have significantly shifted the automobile market in Iceland. According to María Jóna Magnúsdóttir, executive director of the Automotive Industry Association, last year was the seventh highest year for automobile sales in the country since 1972.
“It’s gone pretty well, in spite of great disasters around the world; car sales here have been good,” she remarked. “We’re naturally seeing a huge spike in the sale of electric cars, especially to individuals. They’re choosing electric cars just over 50% of the time.”
Toyota sold the most cars overall, Tesla the most cars for personal use
Just under 16,700 cars were newly registered in Iceland last year. Of these, 7,600 were rental cars.
Toyota is the foremost seller of cars that will be used on the rental market in Iceland. A total of 2,754 Toyota passenger cars were sold last year, the majority of which—or 1,440 cars—were intended as rentals. The remaining 739 Toyotas were sold to individuals.
The manufacturer that sold the second highest number of new cars in Iceland last year was Kia, with 1,800 cars sold. Hyundai was next, with just over 1,400 cars sold. Tesla came in fourth overall, with 1,300 cars sold.
However, if only car sales to individuals are considered, then the rankings shift in Tesla’s favor. Tesla sold 872 cars to individuals last year, followed by Toyota with 739, Kia with 717, and Hyundai with 502 cars sold for personal use. Tesla only sells electric cars, but it is not the only manufacturer that does. Toyota, however, has fewer electric options than its fellow brands.
Overall, nearly 5,600 electric cars were sold in Iceland last year. More diesel cars were sold in 2022 than in 2021 and 2020.
At-home charging only ISK 3 / km
Electric cars are commonly considered to be much cheaper to run and maintain in Iceland, not least because electricity is so much less expensive than petrol.
It’s been estimated that a five-person electric car costs roughly ISK 3/km [$0.021; €0.020/km] if it is charged at home. The price of domestic electricity in Iceland, including distribution charges, is estimated to cost roughly ISK 17 [$0.12; €0.11] per kilowatt-hour. It is more expensive to pay for electricity at fast charging stations and at so-called supercharger stations, though the charging process is, of course, much faster.