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Norway’s New-Car Sales Reach 96% Electric After Policy Deadline Surge

A new VAT on higher-priced EVs pulled demand into December, signaling a shift from broad subsidies toward tougher costs for fossil-fuel models.

Overview

  • Battery-electric vehicles accounted for 95.9% of Norway’s 2025 new registrations, with December reaching 97.6%.
  • Registrations totaled 179,550 cars last year, including 172,233 fully electric models, according to the Norwegian Road Traffic Authority.
  • The government’s October decision to reintroduce up to €4,300 in VAT per EV from 2026, keeping exemptions only for cars under 300,000 NOK in 2026, sparked a year-end buying rush and prompted dealers to reroute inventory to Norway.
  • Norway’s policy mix also raises the cost of combustion cars through a registration tax of around €10,000 and higher charges on fossil fuels.
  • The country’s rapid transition contrasts with broader Europe, where weak EV demand has led the EU to consider easing its planned 2035 combustion-engine restrictions.