Norway just pushed the global EV experiment into overdrive. New data shows that electric vehicles made up nearly all new car sales in 2025, cementing the country’s status as the world’s most advanced EV market. And it happened just as the government is preparing to slowly roll back some of the incentives that made this transition possible.
Norway hits peak EV adoption
According to data from the Norwegian Road Federation, electric vehicles accounted for 95.9 percent of all new car registrations in 2025. In December alone, that number climbed to 97.6 percent. Plug-in hybrids and gas hybrids combined for roughly 3 percent of sales, while diesel vehicles barely registered at around 1 percent.
Much of the late-year surge appears to be policy-driven. Norway has signaled that some of its most generous EV tax incentives will be phased down before being eliminated entirely by 2027, prompting buyers to pull purchases forward while the benefits are still available.
A rare bright spot for Tesla in Europe
The data also highlights a notable win for Tesla $TSLA ( ▲ 0.83% ) . Despite a difficult year overall that saw the company lose its global EV sales crown to China’s BYD $BYDDY ( ▲ 0.41% ) , Norway stood out as an exception. Tesla sold more cars in Norway in 2025 than any automaker ever has in the country, even as deliveries declined across much of Europe.
That contrast underscores how policy and infrastructure can shape EV outcomes. Norway’s long-standing support for electrification has created a market where EVs are not just competitive, but dominant.
The transition is not finished yet
Despite the eye-popping sales numbers, Norway is not fully electric just yet. While nearly all new cars sold are EVs, the total vehicle fleet still tells a different story. Estimates suggest that only about one-third of all cars on Norwegian roads were electric as of 2024, reflecting how long it takes for older gas-powered vehicles to cycle out.
Norway’s experience offers a clear takeaway for the rest of the world. EV adoption can move incredibly fast with the right incentives, but replacing the existing car fleet is a slow, multi-decade process. The finish line may be in sight, but the final miles still take time.