Norway has moved to the brink of eliminating gasoline and diesel cars from its new car market, with electric vehicles accounting for a record 95.9% of all new passenger car registrations in 2025. The December figure reached an astonishing 98%, underscoring the dramatic success of the country's long-term, incentive-driven policy framework.

A total of 179,550 new cars were registered last year—a 40% annual increase and an all-time national record. The surge was partly attributed to consumers accelerating purchases ahead of a value-added tax change effective January 1, 2026. "We see the effect of long-term and targeted electric car policy," said Geir Inge Stokke, Director of the Norwegian Road Traffic Information Council (OFV).

Tesla Dominates in a Virtually All-EV Market
Elon Musk's Tesla solidified its dominance in this transformed market, remaining the top-selling brand for the fifth consecutive year. With 34,285 new registrations, nearly one out of every five new cars sold in Norway was a Tesla—a 41% increase from 2024. The Model Y was the standout model, with 27,621 first-time registrations.

"Taking almost 20 percent market share in a year with record-high new car sales is in itself remarkable," Stokke noted, highlighting the brand's outsized impact. Tesla's strong performance in Norway provided a bright spot amid broader sales challenges in other European markets, even as the company reported a 16% year-on-year decline in global deliveries for the fourth quarter.

A Policy Blueprint for Electrification
Norwegian officials credit consistent policies—such as substantial tax exemptions, toll reductions, and access to bus lanes for EVs—rather than outright bans on combustion engines, for driving the transition. This approach has made Norway, a major oil and gas producer, a global leader in sustainable transportation and a compelling case study for national EV adoption.

The 2025 data suggests Norway is on the cusp of a historic milestone: a new car market virtually free of internal combustion engines. The final steps toward 100% will test the market's ability to address remaining barriers, such as appealing to the last holdouts and ensuring adequate infrastructure in all regions.