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Car News from Norway

The country with the highest share of electric new-car sales in the world, reached through vehicle taxes rather than a ban, and now withdrawing the exemptions that produced it.

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Norway is the market where electric cars stopped being a minority. In 2025 they took 95.9% of new passenger car registrations, and the remaining share of petrol and diesel is now small enough that a change of a few hundred cars moves it.

That happened through taxation. A new petrol or diesel car pays a registration tax calculated from its weight and its CO2 emissions, and 25% VAT on top; electric cars were exempt from both for most of the last two decades. Norway never banned anything and never paid a purchase subsidy. It made the petrol version of a car the more expensive one to buy, and let people choose accordingly. The full sequence of measures, and the schedule now dismantling them, is in how Norway made almost every new car electric.

No cars are built here in volume. What Norway offers a carmaker is a market where an electric model competes against other electric models rather than against a cheaper petrol one, which is why it has repeatedly been used as a launch country: BYD brought the Tang here in 2020, Xpeng delivered its first export cars here in December 2020, and Nio opened its first market outside China here in 2021.

Market Data

Explainers

Frequently asked questions
What share of new cars sold in Norway is electric?
In 2025 Norway registered 179,550 new passenger cars and 172,233 of them were battery-electric, a share of 95.9%. The monthly figure has since gone higher, reaching 98.7% in August 2026. Petrol, diesel, hybrid and plug-in hybrid cars together account for the remainder, and each of those categories is now measured in tens of cars per month rather than thousands.
Why does Norway sell so many electric cars?
Because of how new cars are taxed. A petrol or diesel car pays a one-off registration tax based on its weight and CO2 emissions, plus 25% VAT. Electric cars have been exempt from the registration tax since 1990 and were zero-rated for VAT from 2001, which usually leaves the electric version of a car cheaper in the showroom than the petrol version. No purchase subsidy has ever been paid.
Are cars manufactured in Norway?
Not in volume. Norway has no large car plant, and the cars sold there are imported. Its influence on the industry comes from the demand side: brands have used it as a launch market for electric models, and both BYD and Xpeng entered Europe through Norway in 2020.
Is Norway ending its electric car incentives?
They are being withdrawn on a published schedule. Free municipal parking ended in 2017, toll-free passage in 2019, and the full annual motor-insurance tax returned in 2022. Electric cars have paid the weight component of the registration tax since 2023. The VAT exemption now applies only to the first NOK 300,000 of a car's price, falls to NOK 150,000 in 2027, and disappears in 2028.
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