Image source: gmanetwork.com
Norway’s New Car Sales Were 96% Electric in 2025 : Overview
- 95.9% of new cars registered in Norway in 2025 were fully electric, up from 88.9% in 2024; December reached nearly 98%.
- Record 179,549 new registrations, a 40% increase from 2024.
- Tesla tops sales with 19.1% share (27,621 units, led by Model Y); Volkswagen 13.3%, Volvo 7.8%.
- Driven by tax incentives for EVs and high taxes on ICE vehicles, VAT on EVs > NOK 300,000 starts in 2026.
- Contrasts the EU’s softened 2035 ICE ban; Norway’s “carrot and stick” policy phases out fossil fuels.
Norway Achieves Near-Total EV Dominance: 96% of 2025 New Car Sales Electric
Norway has once again solidified its position as the undisputed global leader in electric vehicle adoption. Official data released on January 2, 2026, revealed that 95.9% of all new cars registered in 2025 were fully electric—a remarkable leap from 88.9% in 2024. In December alone, the figure climbed to nearly 98%, demonstrating how deeply EVs have penetrated the market in this oil-producing Nordic nation.
Total new registrations hit a record 179,549 vehicles, marking a 40% surge year-on-year. This extraordinary growth was fuelled by generous EV incentives combined with punitive taxes on petrol and diesel cars—a classic “carrot and stick” approach that has made internal combustion engine (ICE) vehicles increasingly unviable.
Tesla dominated for the fifth consecutive year, capturing 19.1% market share with 27,621 units sold—the highest single-brand annual volume ever in Norway. The Model Y crossover led the charge, overcoming brand backlash in parts of Europe tied to CEO Elon Musk’s political stances. Volkswagen followed with 13.3%, and Volvo Cars took 7.8%.
Christina Bu, head of the Norwegian EV Association, explained the success: “That is often misunderstood outside of Norway—they all think it’s about tax exemptions and incentives, but it’s very much also about the whip. ICE cars are taxed out of business in a way.”
The few remaining fossil-fuel registrations were mostly specialised vehicles like wheelchair-accessible models, police cars, or select hybrids/sports cars.
Policy Drivers: Incentives and Disincentives
Norway’s transformation relies on a dual strategy:
- EV “Carrot”: Full VAT exemption for EVs under NOK 300,000 (~$30,000) continues into 2026; other perks like free parking, bus lane access, and toll waivers.
- ICE “Stick”: Heavy taxes are making petrol/diesel cars far costlier.
A year-end rush beat the impending VAT on pricier EVs starting January 1, 2026, boosting Q4 numbers. Ford Norway’s Per Gunnar Berg noted redirecting vehicles originally destined elsewhere to meet demand.
Top Brands and Models in 2025
Tesla’s dominance was clear, but established players held strong:
- Tesla: 19.1% share, Model Y bestseller.
- Volkswagen: 13.3%, popular ID series.
- Volvo: 7.8%, safety-focused EX30/EX90.
The data underscores Norway’s unique market: affordable compact EVs thrive alongside premium options.
Contrast with Global Trends
Norway’s near-100% EV shift stands in stark contrast to the rest of Europe, where weak demand prompted the EU to soften its planned 2035 ICE ban last month. In the US, subsidy rollbacks under President Trump have cooled momentum.
Norway’s success shows policy can drive rapid change—even in an oil-rich nation.
Looking to 2026: Compact EVs and New Launches
The retained VAT exemption for sub-NOK 300,000 EVs could spark a compact car revival. Ford’s Berg predicted, “I think the tax changes will accelerate the return of compact cars… which used to dominate both Norway and Europe.”
Volkswagen importer Ulf Tore Hekneby expects fresh combustion-to-electric launches in smaller segments.
The Bigger Picture: Norway as EV Blueprint
With 96% electric new sales, Norway proves aggressive, consistent policy can virtually eliminate ICE vehicles in a decade. Benefits include cleaner air, reduced oil dependence, and a thriving local charging/service ecosystem.
As the world debates EV timelines, Norway’s 2025 results offer a clear message: strong incentives plus disincentives work—delivering environmental gains and market leadership.
Source: republicworld.com
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