Norway continues to set a global benchmark in the transition to electric mobility, with 88.9% of new cars sold in 2024 being fully electric, according to data released by the Norwegian Road Federation (OFV). This marks a significant leap from 82.4% in 2023, placing the oil-producing Nordic nation on track to meet its ambitious goal of only allowing new fully electric vehicles (EVs) on the road by 2025.
With a unique mix of policy incentives and public acceptance, Norway has emerged as a leader in the global EV revolution, leaving traditional internal combustion engine (ICE) cars as a shrinking minority in its new car market.
Tesla Leads the Pack as EVs Dominate Sales
The surge in EV adoption is reflected in the dominance of Tesla, which secured its position as the top-selling brand in Norway for 2024. Volkswagen and Toyota followed closely, while Chinese EV manufacturers gained a foothold, accounting for nearly 10% of all new car sales.
The rising preference for EVs is reshaping the market dynamics, leaving petrol and diesel vehicles struggling to find takers beyond niche segments such as car rentals, where familiarity with EVs among tourists remains a barrier.
The Carrot-and-Stick Approach That Worked
Norway’s EV success story lies in its consistent and strategic policy framework. The government employs a carrot-and-stick approach, heavily taxing petrol and diesel cars while exempting EVs from import duties and value-added taxes (VAT). Although some levies were reintroduced in 2023, EVs remain an economically attractive option for most Norwegians.
Christina Bu, head of the Norwegian EV Association, emphasized the importance of incentives over bans:
“People don’t like being told what to do. Offering incentives instead of imposing bans made EVs a preferred choice rather than a forced one.”
Unlike many countries, Norway lacks an automaker lobby, which has enabled successive governments—regardless of political affiliation—to maintain a stable policy environment. According to Ulf Tore Hekneby, head of Norway’s largest car importer, this absence of domestic automakers made it easier to impose high taxes on vehicles historically, paving the way for the current EV transition.
EVs Surpass Petrol Cars on Norwegian Roads
The EV revolution is not just limited to new car sales. For the first time, fully electric cars outnumbered pure petrol cars on Norwegian roads in 2024, comprising over 28% of the country’s total vehicle fleet. The trend underscores a broader transformation across sectors that must adapt to the EV surge.
At fuel stations, petrol pumps are gradually being replaced with fast electric chargers. Circle K, Norway’s largest fuel retailer, has committed to installing as many EV chargers as fuel pumps within the next three years. According to Anders Kleve Svela, a senior manager at Circle K:
“In just a couple of years, more than 50% of all cars in Norway will be electric. We are ramping up our charging infrastructure to meet this demand.”
Challenges and Adaptations
Despite the overwhelming shift, some challenges remain. Cold winters in Norway can slightly increase EV charging times, requiring drivers to adjust their habits. Desire Andresen, a 28-year-old caregiver, shared her perspective:
“Sometimes I miss being able to fill up and drive off in five minutes, but I’m more comfortable with an electric car. It’s better for the environment, and diesel cars produce so much smell.”
For tourists, unfamiliarity with EVs keeps rental companies among the primary buyers of ICE vehicles. However, as infrastructure and public awareness improve, this gap is expected to narrow.
The Global Lesson: Consistency and Incentives Matter
Norway’s policies offer a roadmap for other nations seeking to transition to sustainable mobility. Cecilie Knibe Kroglund, Norway’s deputy transport minister, highlighted the importance of long-term planning:
“Put together a broad package of incentives and make it predictable for the long term. That’s the big lesson.”
While the European Union has set a target to ban sales of carbon-dioxide-emitting vehicles by 2035, Norway’s progress demonstrates how a combination of incentives, public acceptance, and reliable infrastructure can accelerate change.