🌅 Norway Cements Its Lead in EV Adoption

SOURCE

Norwegian Road Traffic Information Council

WHAT TO KNOW

• Nearly all (95.9%) new cars registered in Norway last year were fully electric vehicles (including 98% of new registrations in December), up from 88.9% in 2024 to mark a new record high for the global leader in phasing out gas- and diesel-powered cars. The remaining 4.1% of sales were hybrid (2.8%), diesel (1%), and gas (0.3%) cars, the bulk of which were specialized vehicles like wheelchair-accessible vans and those used by police and first responders.

WHY IT MATTERS

• Experts say Norway’s EV revolution is driven by a combination of tax incentives that reduce the price of EVs and new charges that make gas and diesel cars more expensive, effectively “taxing” combustion engines out of existence. A tax update that took effect on January 1 also drove a historically strong end of the year as buyers rushed to snag an EV before the year finished.

CONNECT THE DOTS

• Norway’s success stands in stark contrast to the rest of the E.U., where pressure from car manufacturers and lighter consumer demand prompted lawmakers last month to reverse the bloc’s planned 2035 ban on cars powered by combustion engines. Among other updates intended to provide greater flexibility as the market moves forward, the reversal lowered various emission reduction targets and allows automakers to continue selling plug-in hybrids beyond 2035.