Jan 5, 2026
Norway leads in the electric vehicle race with car sales reaching 96% electric.
Almost all new cars registered in Norway last year were fully electric, according to official data released on Friday. This surge in electric vehicle (EV) sales, led by Tesla, reinforces Norway's position as a global frontrunner in eliminating petrol and diesel vehicles.
Norway's rapid transition to battery-powered cars stands in stark contrast to other European nations, where a decline in demand for EVs led the European Union to reverse its proposed 2035 ban on internal combustion engine vehicles last month. Thanks to tax incentives, 95.9% of all new cars registered in Norway in 2025 were EVs, with the proportion nearly reaching 98% in December. This annual figure increased from 88.9% in 2024, as reported by the Norwegian Road Federation (OFV).
A record total of 179,549 new cars were registered in Norway over the year, reflecting a 40% rise from 2024, according to the OFV.
Tesla dominated Norway's car market for the fifth year in a row, achieving a 19.1% market share, followed by Volkswagen with 13.3% and Volvo Cars at 7.8%. Tesla's Model Y led sales, with the company delivering 27,621 vehicles in Norway in 2025, a record for any automaker in a single year, despite facing consumer backlash in Europe related to CEO Elon Musk’s political affiliations.
Chinese-manufactured cars captured a 13.7% market share in Norway in 2025, an increase from 10.4% the previous year, with BYD leading the way by significantly boosting its sales in the region. In October, Norway announced plans to impose a value-added tax of up to $5,000 per vehicle starting January 1, 2026, prompting a surge in demand among buyers and automotive companies eager to meet the 2025 deadline.
Ford Norway's Managing Director, Per Gunnar Berg, mentioned that they quickly redirected cars not initially intended for Norway to expedite their arrival.
The Norwegian government's approach includes both incentives and penalties, as some EV benefits have been reduced while making petrol and diesel cars progressively more expensive, according to Christina Bu, head of the Norwegian EV association. She noted that many outside Norway misunderstand the situation, believing it solely revolves around tax incentives rather than also being about discouraging the use of internal combustion engine vehicles through taxation.
The few fossil-fuel cars registered in 2025 were primarily specialized models, such as those adapted for wheelchair access, or vehicles for police and emergency services, along with a few hybrids and sports cars. Vehicles priced below 300,000 Norwegian crowns ($29,831.75) will remain VAT-exempt in 2026, which could benefit smaller cars, according to industry executives.
Berg commented that tax changes may accelerate the return of compact cars, which previously were more common in Norway and Europe. Ulf Tore Hekneby, head of Harald A Moller, the importer for Volkswagen, Audi, Skoda, and CUPRA, stated that more combustion engine models will be introduced as electric ones and that his company coordinated with factories to increase production and prioritize Norway.
Hekneby added that many new compact car launches are anticipated from their brands, revitalizing a segment that has been lacking in recent years.
Norway's rapid transition to battery-powered cars stands in stark contrast to other European nations, where a decline in demand for EVs led the European Union to reverse its proposed 2035 ban on internal combustion engine vehicles last month. Thanks to tax incentives, 95.9% of all new cars registered in Norway in 2025 were EVs, with the proportion nearly reaching 98% in December. This annual figure increased from 88.9% in 2024, as reported by the Norwegian Road Federation (OFV).
A record total of 179,549 new cars were registered in Norway over the year, reflecting a 40% rise from 2024, according to the OFV.
Tesla dominated Norway's car market for the fifth year in a row, achieving a 19.1% market share, followed by Volkswagen with 13.3% and Volvo Cars at 7.8%. Tesla's Model Y led sales, with the company delivering 27,621 vehicles in Norway in 2025, a record for any automaker in a single year, despite facing consumer backlash in Europe related to CEO Elon Musk’s political affiliations.
Chinese-manufactured cars captured a 13.7% market share in Norway in 2025, an increase from 10.4% the previous year, with BYD leading the way by significantly boosting its sales in the region. In October, Norway announced plans to impose a value-added tax of up to $5,000 per vehicle starting January 1, 2026, prompting a surge in demand among buyers and automotive companies eager to meet the 2025 deadline.
Ford Norway's Managing Director, Per Gunnar Berg, mentioned that they quickly redirected cars not initially intended for Norway to expedite their arrival.
The Norwegian government's approach includes both incentives and penalties, as some EV benefits have been reduced while making petrol and diesel cars progressively more expensive, according to Christina Bu, head of the Norwegian EV association. She noted that many outside Norway misunderstand the situation, believing it solely revolves around tax incentives rather than also being about discouraging the use of internal combustion engine vehicles through taxation.
The few fossil-fuel cars registered in 2025 were primarily specialized models, such as those adapted for wheelchair access, or vehicles for police and emergency services, along with a few hybrids and sports cars. Vehicles priced below 300,000 Norwegian crowns ($29,831.75) will remain VAT-exempt in 2026, which could benefit smaller cars, according to industry executives.
Berg commented that tax changes may accelerate the return of compact cars, which previously were more common in Norway and Europe. Ulf Tore Hekneby, head of Harald A Moller, the importer for Volkswagen, Audi, Skoda, and CUPRA, stated that more combustion engine models will be introduced as electric ones and that his company coordinated with factories to increase production and prioritize Norway.
Hekneby added that many new compact car launches are anticipated from their brands, revitalizing a segment that has been lacking in recent years.