Nearly all new cars sold in Norway are now electric, at 96%. Considering less than 10% of new cars sold in America are electric vehicles, that’s a remarkable statistic made possible only by a specific set of circumstances. Warm weather is certainly not one of them.

To be precise, 95.9% of all new cars registered in 2025 were EVs, up from 88.9% in 2024. The number was even higher in December 2025, at 98%, according to fresh data from the Norwegian Road Federation (OVF), as reported by Reuters.

Most of the growth comes from tax incentives, making it cheaper to buy an EV than a gas-powered car in many cases. (The US ended its $7,500 federal EV tax credit in September.) The funding for those credits comes in part from taxes on Norway’s thriving oil and gas producers, according to Offshore Technology Focus. Oil is the country’s single largest industry, according to the International Trade Association. So, Norway is taking money earned on fossil fuels and using it to subsidize cleaner transit.

However, tax credits are not the full story. Norway also taxes gas and diesel cars to make them more expensive, Christina Bu, head of the Norwegian EV association, tells Reuters. “That is often misunderstood outside of Norway. [People] think it’s about tax exemptions and incentives,” Bu says. “ICE (internal combustion engine) cars are taxed out of business in a way.”

Another reason for the country’s adoption could be the wide availability of lower-priced Chinese EVs, which are not available in the US. Chinese EVs had a 13.7% market share in Norway in 2025, up from 10.4% the previous year. The top automaker is BYD, which this week dethroned Tesla as the world’s top EV maker.

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Still, the Tesla Model Y was the most popular battery-powered car in Norway in 2025. Tesla was also the nation’s top-selling brand overall for the fifth consecutive year, with a 19.1% market share, followed by Volkswagen (13.3%) and Volvo (7.8%). Tesla is also the most popular EV brand in the US, but Volkswagen’s battery-powered lineup has struggled to cement itself in the US market, and it’s not releasing a 2026 version of its retro-chic ID.Buzz.

Wide charging availability is another factor. Norway has over 28,000 chargers across its road system, and its capital Oslo has one of the highest charger densities in Europe, according to Bloomberg. Charging is often free, and many stations have a high number of stalls so drivers do not have to wait.

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