OSLO, Norway — Norway has moved closer than ever to eliminating gasoline and diesel cars from its streets, with electric vehicles accounting for 95.9 percent of all new cars registered last year, according to official data released by the Norwegian Road Federation. That figure peaked at nearly 98 percent in December, underlining a dramatic acceleration in the country’s transition to all-electric transportation.
The 2025 tally shows Norway solidifying its reputation as the world’s most advanced market for electric mobility. The country registered a record 179,549 new cars during the year, a sharp 40 percent jump from 2024.
These figures not only mark a remarkable shift in consumer behavior but also highlight the effectiveness of Norway’s long-standing combination of tax policies, incentives, and penalties aimed at phasing out fossil fuel vehicles.
Tesla Takes the Lead
Image Credit: Out of Spec Reviews/YouTube.
For the fifth consecutive year, Tesla was the best-selling automotive brand in Norway, capturing 19.1 percent of new car registrations. Led by strong demand for models like the Model Y, Tesla sold more than 27,000 vehicles in Norway in 2025, a year-on-year increase of about 41 percent. This was the highest annual total for any automaker in the Norwegian market’s history.
Despite a wider slump in some European markets for the U.S. EV maker, Norway remains Tesla’s stronghold. Local buyers continue to favor its vehicles for their range, charging network and accumulated brand recognition. Analysts say Norway’s affluent and environmentally conscious consumer base also plays a role in these strong sales.
Volkswagen followed Tesla in the Norwegian rankings with 13.3 percent of new registrations, while Volvo Cars claimed 7.8 percent. Chinese automakers also made notable gains; collectively, they grew their share from about 10.4 percent in 2024 to roughly 13.7 percent in 2025, led by companies like BYD, which have expanded aggressively in Europe.
Policy Push and Market Dynamics
Image Credit: Out of Spec Reviews/YouTube.
Norway’s electric vehicle boom is a direct result of decades of targeted policy. Rather than imposing bans on internal combustion engine cars, the government has crafted a blend of incentives for EVs and penalties for gasoline and diesel vehicles.
These measures include reduced taxes on EV purchases and additional fees on fossil fuel cars. This carrot and stick approach fundamentally shifted market preferences in the country.
In a notable development last year, Norwegian officials announced plans to introduce up to a $5,000 value-added tax on EV purchases beginning January 1, 2026. This prompted a rush of buyers and dealers to secure vehicles before the new tax took effect, contributing to the record breaking figures at the end of 2025.
Automotive executives said some manufacturers also rerouted units originally bound for other markets into Norway in order to meet demand before the deadline.
Image Credit: Peulle – Own work, CC BY-SA 4.0, Wikimedia.
Transport Ministry officials have emphasized that the country’s approach has been about consistency and predictability, rather than abrupt regulation. They argue that reliable long-term policy gave consumers the confidence to adopt electric vehicles at such scale.
A Global Outlier
Norway’s achievement stands in stark contrast to trends elsewhere. In other parts of Europe and the United States, EV uptake remains slower and more volatile. For example, weak EV demand led the European Union to delay its planned 2035 ban on sales of traditional combustion engine cars, illustrating the gap between Norway’s experience and broader markets.
Industry observers say Norway’s example offers insights into how national policy can accelerate EV adoption, even in a wealthy, oil-producing country. Yet experts also caution that broader infrastructure, supply chain constraints and consumer preferences will continue to shape the global transition in diverse ways.
Despite the near-total domination of electric cars in the new vehicle market, petrol and diesel cars have not disappeared entirely from Norwegian roads. The small share of new fossil fuel vehicles in 2025 included specialized vehicles such as emergency response units and other niche categories. But the trend points to their continued decline as electric models become even more prevalent.
