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Norway’s New Car Market Is Now Basically All-Electric and Here’s Why

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Norway’s New Car Market Is Now Basically All-Electric and Here’s Why - Carr.pk

In 2025, electric vehicles (EVs) captured a staggering 95.9% of new car registrations in Norway, solidifying its position as the global leader in the EV race, according to reports by Reuters.

Norway continues to outpace the world in adopting electric vehicles, with EVs dominating new car sales amid strong government policies and market shifts.

Record-Breaking Year for EV Adoption

Norway registered a record 179,549 new passenger cars in 2025. It’s a 40% jump from 2024. Fully electric models accounted for 95.9% of these. This is more from 88.9% of the previous year. December alone saw 97.6% fully electric registrations.

This surge came as buyers and manufacturers rushed to beat a new EV value-added tax of up to $5,000 starting January 1, 2026. 

Christina Bu, head of the Norwegian EV Association, explained that It’s very much also about the whip as ICE cars are taxed out of business.

chart shows EV sales so far in Norway according to the Reuters data

Tesla Dominates and Chinese Brands Rise

Tesla claimed the top spot for the fifth year in Norway, with 19.1% market share and a record 27,621 vehicles sold, led by the Model Y. 

Volkswagen followed at 13.3%, while Chinese-made cars grew to 13.7% share, driven by BYD, which doubled its sales.

The chart shows the market share of each top-selling EV car/company according to the Reuters report

What’s Next for Norway’s EV Market?

Reports say, smaller EVs under approx. $30,000 remain VAT-exempt in 2026, potentially boosting compact models. Experts predict more launches in this segment.

This explains Norway’s huge EVs surge which is all thanks to smart government rules that reward clean cars and make gas and diesel ones more expensive.