In a groundbreaking shift, Norway achieved a significant milestone in 2024, with nearly 9 out of 10 new cars sold being fully electric. Registration data from the Norwegian Road Federation
(OFV) revealed that battery-powered vehicles accounted for 88.9% of all new car sales, up from 82.4% in 2023. The top brands leading this transformation were Tesla, Volkswagen, and Toyota.
This remarkable progress positions Norway as the first country likely to phase out petrol and diesel engines from its new car market, with a goal of selling only electric vehicles (EVs) by 2025. “Norway will be the first country in the world to almost completely eliminate petrol and diesel engine cars from the new car market,” said Christina Bu, head of the Norwegian EV Association.
A proven policy mix: incentives over bans
Norway's success stems from a long-standing strategy combining financial incentives for EVs and heavy taxes on internal combustion engine (ICE) vehicles. While oil-producing Norway imposes high levies on petrol and diesel cars, EV buyers benefit from exemptions on import duties and value-added taxes. Although some EV levies were reintroduced in 2023, the overall policy remains effective.
“The policy has worked because it has been consistent over time, maintained by governments across the political spectrum,” said Bu. She noted that such consistency contrasts with other countries, where incentives are often introduced and later withdrawn, undermining their impact.
Norway’s lack of an automaker lobby also contributed to its approach. “We are not a car-producing country, so taxing cars highly in the past was simple,” explained Ulf Tore Hekneby, CEO of Harald A. Møller, the country's largest car importer.
Rather than outright banning petrol and diesel cars, Norway relied on incentives to encourage EV adoption. “People don’t like being told what to do,” Bu said, emphasizing the importance of a voluntary transition.
Norway's EV leadership in context
As of December 2024, fully electric cars made up over 28% of all vehicles on Norwegian roads, according to Public Road Administration data. Deputy Transport Minister Cecilie Knibe Kroglund highlighted the importance of a comprehensive and predictable policy approach, saying, “That’s the big lesson: put together a broad package [of incentives] and make it predictable for the long term.”
While the European Union aims to ban sales of carbon-emitting cars by 2035, it may allow vehicles running on synthetic fuels. Norway's success demonstrates an alternative path through incentives rather than mandates.
Challenges and adaptations
Despite widespread adoption, some segments, like rental car companies, continue to purchase ICE vehicles, primarily to cater to tourists unfamiliar with EVs. However, the transition to electric vehicles has led to broader changes across industries. Fuel stations are increasingly replacing petrol pumps with fast electric chargers.
“Within the next three years, we will have at least as many charging stalls as fuel pumps,” said Anders Kleve Svela, senior manager at Circle K, Norway’s largest fuel retailer. He added, “More than 50% of all cars in Norway will be electric within a couple of years. We have to ramp up our charging park accordingly.”
Adapting to EV realities
For drivers, switching to EVs requires some adjustments, especially during the cold Norwegian winters when charging times can increase. “Sometimes I miss that — I could just pump it full and drive off five minutes later,” admitted Desire Andresen, a 28-year-old caregiver charging her car at a station near Oslo. “But I’m more comfortable with an electric car. It’s better for the environment, and diesel cars produce so much smell.”
Looking ahead
Norway’s achievements highlight the potential of sustained policy support and incentives in accelerating the transition to electric mobility. With the nation on track to meet its ambitious 2025 goal, its experience serves as a model for other countries looking to shift toward sustainable transportation. Photo by Wolfmann, Wikimedia commons.