Norway Nearly Eliminates New Gas Car Sales in 2025

Norway Leads the Global EV Transition

Norway continues to outpace the rest of the world in electric-vehicle adoption. In 2025, pure electric vehicles accounted for 95.9% of all new car sales, a near-complete transition away from combustion engines. This milestone comes almost a decade ahead of the European Union’s target to end new gas car sales by 2035.

A decade ago, EVs made up only about 30% of new car purchases in Norway. Today, the country’s roads are dominated by electric models, reflecting both consumer preference and effective government policies.

The Role of Incentives and Taxes

While Norway has gradually scaled back EV incentives, sales remained strong. Historically, VAT exemptions for electric vehicles encouraged adoption. Starting in 2026, only EVs priced under $30,000 qualify for these exemptions, removing the benefit for many popular models.

At the same time, Norway imposes heavy taxes on combustion vehicles, including high registration fees and elevated fuel taxes. These measures make owning and operating a gas car considerably more expensive, tipping the balance heavily in favor of EVs.

Popular Models and Market Share

Tesla remained Norway’s top-selling brand for the fifth consecutive year, capturing 19.1% market share in 2025. Volkswagen and Volvo followed, while Chinese automakers grew their presence, collectively holding 13.7%, up from 10.4% in 2024.

Despite the shrinking incentive for higher-priced EVs, buyers continue to choose electric models. Most remaining gas purchases serve niche purposes, such as commercial or off-road applications where no EV equivalent exists.

Comparison with Other Nordic and European Countries

Norway’s EV adoption is far ahead of the European Union average, which stands at just 17% for new cars. Denmark follows Norway, with more than 50% of new vehicles being electric, and Sweden at around 37%. Plug-in hybrids vary, making up 24.7% of new car sales in Sweden and 20.7% in Finland, according to the European Environment Agency.

Norway’s nearly complete transition demonstrates the impact of policy alignment, infrastructure readiness, and consumer willingness, serving as a blueprint for other nations.

Looking Ahead to 2026

With the VAT exemption limited to EVs under $30,000, the market may shift toward smaller and more affordable models in 2026. European manufacturers are now offering a wider range of compact electric cars, while competitively priced Chinese models also qualify for the incentive.

Reuters notes that this could influence the types of vehicles purchased, as buyers may reconsider smaller EVs they previously overlooked. Norway’s EV market may continue to grow, but the focus is likely to evolve, balancing affordability with consumer demand for popular mid-range models.

Conclusion

Norway’s 2025 car sales reflect a near-complete shift to electric vehicles, demonstrating how policy, taxation, and infrastructure can drive adoption. While high-end models lose VAT benefits, the incentive for affordable EVs may reshape the market in 2026, encouraging diversity in vehicle size and price points.

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