Norway is making its way to the future faster than many people thought. Widely considered one of the best places to live in the world, the country is always on the top of lists made from magazines, journals and blogs. Now, they have taken a step towards the next generation of vehicles by simply imposing high taxes on gasoline and diesel cars, while the electric power trains taxers are lower than ever. The absence of automakers in the country is also a motivating factor.
Electric vehicles are dominating the market
For years, electric vehicles have been the poster child of climate ambitions—promoted by governments, automakers, and environmental advocates alike as the future of transportation. Yet, while EV sales have surged globally, many countries continue to struggle with adoption rates, facing barriers ranging from high prices to insufficient charging infrastructure.
Some markets, however, have quietly outpaced the rest. In certain regions, the combination of targeted policies, public incentives, and consumer mindset shifts has led to a tipping point many thought would take decades. And now, Norway has crossed a threshold no one else has reached: in 2024, nearly every new car sold there was electric.
Norway is going (almost) fully electric in 2025
Last year, nearly nine out of ten new cars sold in Norway ran solely on batteries, according to registration data from the Norwegian Road Federation (OFV). With 88.9% of new car sales being fully electric, up from 82.4% the year before, the country is closing in on its goal of having all new vehicles be electric by 2025.
The top brands leading this shift were Tesla, Volkswagen, and Toyota. Chinese electric vehicles are also gaining ground, now making up around 10% of the market. According to Christina Bu from the Norwegian EV Association, Norway is on track to be the first country where petrol and diesel cars nearly vanish from new car sales.
This result is largely due to the country’s approach of taxing traditional petrol and diesel cars heavily, while giving electric models significant tax breaks. Though some taxes on EVs were brought back in 2023, the policy of encouraging electric cars over combustion ones has stayed consistent across different governments. Bu pointed out that consistency matters, since many countries introduce incentives but then pull them back, which confuses buyers.
The country doesn’t have automakers
Another factor helping Norway’s transition is the lack of a local car manufacturing industry, explained Ulf Tore Hekneby from Harald A. Moeller, the country’s largest car importer. Without a domestic car lobby, it was easier for the government to maintain high taxes on traditional vehicles.
Rather than banning petrol and diesel cars outright, the country is focused on encouraging consumers through incentives, which Bu said helped avoid public resistance. People, she noted, generally dislike being forced into decisions. While the European Union has chosen to ban new petrol and diesel cars starting in 2035—with some exceptions for synthetic fuels—the strategy has focused on gradual change through predictable policies.
Preference for petrol and diesel
According to deputy transport minister Cecilie Knibe Kroglund, building a broad package of incentives and sticking to it over the long term has been the key – but not everyone has switched. Hekneby mentioned that rental companies continue to buy petrol and diesel cars, mostly to meet the needs of tourists who are less familiar with EVs.
Anders Kleve Svela from Circle K, Norway’s biggest fuel retailer, said they are steadily replacing fuel pumps with electric chargers. Within three years, he expects the number of charging points to match the number of fuel pumps. While EV adoption continues to grow, Norwegian drivers face small challenges in winter, like longer charging times due to cold weather.
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