Norway has continued its trend as the EV leader in Europe, essentially wiping out gasoline and diesel cars from its new-car market.
According to its final 2025 update, the Norwegian Road Traffic Information Council confirmed that 95.9% of all new vehicle sales in 2025 were EVs. In 2025, 179,550 new vehicles were registered in the country, a 40% jump over 2024.
The jump can be attributed to changes in tax laws that will take effect over the next two years which saw Norwegians rushing to buy new vehicles in 2025. In 2026, the EV VAT exemption will be reduced from NOK 500,000 to NOK 300,000 and fully phased out in 2027.
For Tesla, Norway remains a key market on the continent as sales have slumped in other jurisdictions within the European Union. In fact, Tesla secured its fifth straight title as the top car brand in the Scandinavian country, with 34,385 vehicles registered. Put another way, one in every five new cars on the road in Norway in 2025 was a Model 3 or Model Y.
The Model Y alone accounted for 27,621 registrations, meaning that 15% of new-vehicle sales were Tesla SUVs.
2026 will be a real test for Tesla and the rest of the EV automakers that have seen Norway as a reliable and predictable market. The VAT changes will affect the final prices of vehicles, and this policy shift will shape the future of EV sales in Norway. However, how much of an effect remains a little bit of a mystery for now.
