Norway registered electric vehicles hit 95.9% of new car sales in 2025, according to data from the Norwegian Road Federation. The figure peaked at 98% in December as buyers rushed to secure vehicles before tax changes took effect January 1.
The Scandinavian country recorded 179,550 new passenger car registrations last year, a 40% increase from 2024. Electric vehicles accounted for 172,233 of those registrations, up from 88.9% market share the previous year.
Tesla maintained its position as Norway's top automotive brand for the fifth consecutive year with 19.1% market share. The company sold 34,285 vehicles in 2025, including 27,621 Model Y units that set a national record for single-model annual registrations.
Chinese automakers collectively increased their market share from 10.4% to 13.7% last year. BYD led Chinese brands with 3.3% share, more than doubling its sales from 2024 levels.
Volkswagen followed Tesla with 13.3% market share, while Volvo claimed 7.8%. December saw Volkswagen close the gap with 14.9% share compared to Tesla's 16.2% for the month.
Norway's electric vehicle dominance stems from decades of consistent policy combining EV incentives with penalties for combustion vehicles. The country exempted electric vehicles from value-added tax while imposing high registration fees and fuel taxes on gasoline and diesel cars.
That policy framework changed January 1 when Norway introduced up to $5,000 in VAT on EV purchases. Only vehicles priced below roughly $30,000 remain exempt, prompting a year-end buying surge that contributed to December's record 35,188 registrations.
The remaining 4.1% of new registrations included petrol, diesel, and hybrid vehicles. Pure diesel cars accounted for just 1% of sales, while petrol vehicles made up only 0.3%, mostly specialized units like emergency response vehicles.
Norway's achievement contrasts with broader European trends where EV adoption averages 17%. The European Union delayed its planned 2035 combustion engine ban last year after industry pressure, while Nordic neighbors Denmark and Sweden reached 50% and 37% EV adoption respectively.
The country also became the first where electric vehicles outnumbered diesel cars in the national fleet during 2025. OFV Director Geir Inge Stokke noted that two-thirds of vehicles on Norwegian roads still run on fossil fuels despite the new car market transformation.
Beyond passenger cars, Norway's van market reached 45.2% electric registration share in 2025, while buses achieved 56.3%. The truck market lagged at 17.3% electric, with 73.2% still running on diesel.
Industry analysts say Norway's experience demonstrates how consistent policy can accelerate EV adoption even in oil-producing nations. The country's affluent, environmentally conscious consumer base and developed charging infrastructure contributed to the rapid transition.
Global EV leader BYD, which overtook Tesla in worldwide sales last year with 28% growth, remains far behind in Norway. The Chinese manufacturer's market position reflects broader industry shifts as Western automakers accelerate development timelines to compete with Chinese manufacturers.
Norway's near-complete transition to electric vehicles comes a decade after EVs accounted for just 30% of new car sales. The country has effectively achieved its 2017 goal of eliminating new gasoline car sales nearly a decade ahead of the European Union's original 2035 target.
