Electric vehicles continued to dominate the Norwegian market in 2025, according to Reuters.
Fresh data showed that 95.9% of new car registrations last year in Norway were EVs. 2025 was also the year that the number of EVs on Norway's roads surpassed that of diesel cars. Tesla captured the most new sales, with a 19.1% share and the Model Y leading the way.
The robust adoption was thanks in large part to the implementation of tax incentives, but experts offered an additional dimension to consider.
"That is often misunderstood outside of Norway - they all think it's about tax exemptions and incentives, but it's very much also about the whip," said Christina Bu, head of the Norwegian EV association, per Reuters. "ICE cars are taxed out of business in a way."
Internal combustion engine cars in Norway are taxed extra at the pump, with a one-time registration fee commensurate with the vehicle's pollution potential, and congestion charges in urban centers. This is all on top of the usual value-added tax. This can lead to scenarios where drivers of gas cars pay three times more in annual fees than those of electric vehicles.
Light-duty vehicles generate harmful pollution, both from their tailpipes and tires. Pollution captures heat in the atmosphere and exacerbates a range of destructive (and costly) weather patterns. These can include droughts, floods, storms, and wildfires, all of which impose hardship on homeowners, farmers, and society at large.
Switching to an EV can help curb those outcomes while also being cheaper to drive in the long run.
Norway has built a large sovereign wealth fund from oil production. Much of this money goes to subsidizing EV adoption and other sustainable ventures, though these EV incentives are beginning to taper off. At least one Norwegian tax exemption for EVs expired at the start of 2026. Some experts believe this will offer a window for smaller, cheaper cars that are still tax-exempt.
"I think the tax changes will accelerate the return of compact cars... which used to dominate both Norway and Europe," said Gunnar Berg from Ford Norway, per Reuters.
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