Sale and Registration of Electric Vehicles Slows Significantly Skip to content

Sale and Registration of Electric Vehicles Slows Significantly

By Erik Pomrenke

iceland green energy
Photo: Golli.

A recent report from the Icelandic Automobile Association shows a significant decline in the sale and registration of new electric vehicles in Iceland.

Read more: Electric Motion

According to the numbers released, some 5,258 new passenger vehicles have been sold and registered so far this year. At the same time last year, 8,156 passenger vehicles had been sold and registered. This year’s numbers represent a 35% decrease from last year.

In addition to the decline in total passenger vehicles, EVs have also seen flagging numbers this year. The Icelandic Automobile Association reports that so far this year, 774 new EVs have been sold and registered, accounting for 14.7% of the market. This year’s numbers are some of the lowest-ever since the introduction of EVs to the Icelandic market.

In contrast, in the first five months of 2023, a total of 2,500 EVs were sold, which represented then a market share of 40.5%.

However, hybrid cars are performing well on the Icelandic market this year, with a total 1,288 new sales and registrations so far this year, representing 24% of the market. Hybrids are the best-performing category for passenger vehicles so far this year, followed by diesel vehicles in second place, and gasoline vehicles in third place.

Environmental targets

The Icelandic government has proposed a plan to replace fossil fuels with electricity in the coming decades, aiming for a total ban on new petrol and diesel vehicles by 2030 and to have 30,000 electric cars by 2026. The most recent available information from Statistics Iceland shows some 24,000 EVs in Iceland.

The City of Reykjavík has also set climate goals to achieve carbon neutrality by 2040, including reducing fossil fuel pumps. The city plans to increase the availability of charging stations and promote commuting by bicycle, foot, and public transport.


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