Although Norway is western Europe's largest exporter of petroleum products, it has led the shift to electric vehicles, setting a non-binding target of selling only zero-emission vehicles in 2025 -- then years ahead of the neighbouring European Union.

A record 179,549 personal vehicles were registered in 2025, beating the previous high set in 2021, the Norwegian Road Federation (OFV) said on Friday.

Electric vehicles accounted for 97.6 percent of sales in December.

"While car sales are traditionally strong at the end of the year, there is no doubt the VAT tax change on January 1, 2026 spurred many people to buy a new electric vehicle before the end of the year," OFV director Geir Inge Stokke said in a statement.

The Norwegian government decided to lower the exemption from VAT tax from 500,000 kroner ($49,600) to 300,000 kroner from the start of 2026.

The elimination of the exemption, initially planned for 2027, is expected to be pushed back to 2028.

Tesla consolidated its leading position in the Norwegian market, accounting for 19.1 percent of total registrations.

A record 34,285 new Teslas were registered in Norway last year according to the OFV, as the brand escaped the drop in sales it has seen elsewhere in Europe due to the controversies stoked by its founder Elon Musk.

Chinese carmakers also boosted their share of the Norwegian market, climbing from 10.4 percent in 2024 to 13.7 percent in 2025.

ef/rl/cc

Tesla