Norway has become the world’s leading country in electric vehicle (EV) adoption, setting a record that most nations can only dream of achieving. In September 2025, almost every new car sold in the country was electric, reaching a stunning 98.3 percent of total sales. This success was not by chance or luck, it was the result of years of careful planning, smart policies, and strong public support for clean energy.
One of the main reasons behind Norway’s EV success is its government’s strong commitment to reducing carbon emissions. The country introduced a mix of rewards and penalties that encouraged drivers to choose electric cars instead of fuel-powered ones. For example, cars with combustion engines are heavily taxed when imported, making them much more expensive.
On the other hand, electric vehicles have been exempted from these import taxes and, until 2022, were also free from the 25 percent value-added tax (VAT). Since 2023, this VAT exemption applies only to EVs that cost less than 42,600 euros ($49,300), which is still a great incentive for middle-income buyers.
The Norwegian government also offered attractive benefits to make EV ownership more appealing. For years, electric car owners enjoyed free tolls, cheaper ferry rides, reduced parking fees, and even permission to drive in bus lanes. Although some of these privileges have been reduced as more people switched to EVs, they played an important role in speeding up the transition. Officials describe this strategy as using “the stick for fossil vehicles and the carrot for electric vehicles.”
Another factor that sets Norway apart is its lack of a local car manufacturing industry. Because the country does not have big automakers to protect, the government could focus entirely on policies that benefit the environment and the people, without facing resistance from industry lobby groups. This made it easier to implement strict taxes on fuel cars and provide full support for electric mobility.
Despite its cold winters and long travel distances, Norway has also invested heavily in charging infrastructure. The country now has one of the best charging networks in the world, reducing the fear of running out of power on the road. Most electric cars in Norway are built with advanced heating systems that protect battery life in freezing conditions.
Real-world tests carried out by the Norwegian Automobile Federation have also helped improve the performance of electric cars globally.
Finally, popular brands like Tesla have strengthened Norway’s EV market. Tesla’s Model Y remains the best-selling car in the country, helping push new car sales up by over 20 percent compared to 2024. Norway’s experience shows that with the right policies, infrastructure, and public cooperation, even a small, cold country can lead the world in clean transport.
EV makers like Rivian Automotive Inc. (NASDAQ: RIVN) would greatly benefit if their domestic market in the U.S. implemented a fraction of the measures that Norway has implemented in its bid to accelerate the switch to electric mobility, but the reality is far from that.
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