Nearly all new cars registered in Norway last year were fully electric, official data showed, highlighting the country’s global lead in phasing out petrol and diesel vehicles as sales of battery-powered cars surged.
According to the Norwegian Road Federation (OFV), 95.9% of all new cars registered in 2025 were electric vehicles (EVs), rising to almost 98% in December. The annual share was up sharply from 88.9% in 2024. A record 179,549 new cars were registered during the year, a 40% increase from 2024.
Oil-producing Norway’s rapid transition to EVs contrasts with much of Europe, where weaker demand has prompted the European Union to roll back plans for a 2035 ban on internal combustion engine cars.
Tesla remained Norway’s top-selling car brand for a fifth consecutive year, accounting for 19.1% of registrations. It was followed by Volkswagen with 13.3% and Volvo Cars with 7.8%.
Led by the Model Y, Tesla sold 27,621 vehicles in Norway in 2025, the highest annual sales figure ever achieved by a single automaker in the country. The performance came despite a consumer backlash against the brand in parts of Europe linked to chief executive Elon Musk’s political views.
Cars produced in China increased their market share to 13.7% from 10.4% a year earlier, driven largely by strong growth from BYD, which more than doubled its sales in Norway.
Norway, which began taxing EVs in 2023, announced in October that it would introduce up to $5,000 in value-added tax per vehicle from January 1, 2026. The move triggered a rush by buyers and manufacturers to bring forward deliveries before the end of 2025.
“What we did very quickly was to redirect a number of cars that were not originally intended for Norway, to get them here faster,” said Per Gunnar Berg, managing director of Ford Norway.
While some EV incentives have been reduced, the government has steadily increased taxes on petrol and diesel cars, making them significantly more expensive, said Christina Bu, head of the Norwegian EV Association.
“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,” Bu said. “ICE cars are taxed out of business in a way.”
The few fossil-fuel vehicles registered in 2025 were mainly specialised models, including wheelchair-accessible vehicles, police and emergency service cars, as well as a small number of hybrids and sports cars.
EVs priced below 300,000 Norwegian crowns ($29,832) will remain exempt from VAT in 2026, a move expected to support demand for smaller, more affordable models. Industry executives said upcoming tax changes and new product launches could accelerate the return of compact cars to the Norwegian market after years of dominance by larger models.
