Norway is approaching an all-electric future, with 95.8% of new car registrations in January being fully electric. Despite Tesla’s previous dominance, it fell to third place in sales, overshadowed by Volkswagen and Toyota. Norway has favored incentives over bans to promote electric vehicles, offering significant tax benefits and perks. Upcoming tax increases on combustion vehicles are expected to further boost electric sales. Experts predict nearly total electric vehicle adoption by the end of the year, supported by an extensive charging network.
Are we on the brink of an all-electric future in Scandinavia? January marked a significant milestone for Norway, with a staggering 95.8% of new car registrations representing all-electric vehicles, a record-setting achievement on a global scale. Tesla, the electric car giant overseen by billionaire Elon Musk, saw its position as the top manufacturer in Norway slip last month, despite its prominence in the market.
During this month, Norway recorded the sale of 9,343 vehicles, out of which 8,954 were fully electric, as reported by the Norwegian Road Traffic Information Council (OFV) on Monday. For context, the average market share of electric vehicles in Europe was only 13.6% in 2024, according to the automotive manufacturers’ association (ACEA). Notably, among the 50 best-selling car models in Norway, only two were not electric—one of which was positioned at a distant 33rd place. “We’ve never seen anything like this. If the trend of January continues, we will swiftly approach our 2025 target,” stated Øyvind Solberg Thorsen, director of OFV. Interestingly, Norway, despite being the largest exporter of hydrocarbons in Western Europe, has set an ambitious goal to transition to solely new zero-emission vehicles by 2025, a full decade ahead of the European Union’s timeline.
The Rise and Fall of Tesla
Traditionally a frontrunner in electric vehicle sales, Tesla dropped to third place among the leading car brands in January, falling behind Volkswagen and Toyota. While there is no clear indication that Musk’s controversial political stances are to blame for this decline—especially with recent tensions in Sweden between Tesla and a powerful union—a survey from mid-January reveals that 69% of 1,002 respondents in Sweden hold a negative view of Musk, and 47% feel similarly about Tesla. Positive sentiments for both sit at a mere 10% and 19%, respectively.
Incentives Over Bans
Norway’s approach differs from the EU’s as it has opted not to impose a ban on combustion engines. Instead, the country has implemented various incentives to promote electric vehicle adoption. New electric cars enjoy significant tax exemptions, while fossil-fuel vehicles face steep taxes, making electric models a more financially appealing choice. Additionally, these vehicles have long enjoyed perks such as free access to urban tolls, parking in public lots, and the ability to utilize bus lanes.
Although some of these advantages have been scaled back over time, electric vehicles have now become a societal norm. “The decision to switch was primarily driven by environmental concerns,” shares Frode Hvattum, who owns two electric cars. “The numerous benefits also played a role,” adds this father of three. Norway, known for its harsh winters, has established an extensive network of fast chargers to combat “rekkeviddeangst”—the fear of running out of power. For Hvattum, who frequently travels to his mountain cabin a few hours from Oslo, the developed infrastructure has simplified his journeys significantly. “It’s much easier now that the network is so advanced. We no longer have to meticulously plan our trips,” he explains.
Tax Increases on Combustion Vehicles
Even if all-electric sales don’t quite hit 100% this year, experts believe the target will be met. “We expect to finish the year between 95 and 100%, leaning towards the higher end,” forecasts Christina Bu, secretary general of the Norwegian Electric Vehicle Association. This optimism is bolstered by upcoming tax hikes on combustion and plug-in hybrid vehicles, set to take effect on April 1, further propelling the electric vehicle trend.
According to OFV data, diesel cars made up just 1.5% of new registrations in January, while gasoline vehicles accounted for only 0.4%. “Political leaders cannot become complacent,” cautions Bu. “We need to continue offering benefits like discounts on urban tolls to ensure that the shift to electric vehicles extends into the used car market,” she emphasizes. Out of the 389 new combustion engine vehicles sold in January, only 148 were purchased by private individuals, with the majority going to rental companies, local authorities, or driving schools.
“In regions where distances are long and weather conditions can be unpredictable, many still choose gasoline, diesel, or hybrid vehicles for peace of mind,” suggests Nils Sødal, spokesperson for the Norwegian Automobile Association (NAF).