Norway says ‘mission accomplished’ on going 100% EV, proposes incentive changes

For years, Norway has been the poster child for electric vehicle adoption, a perfect example of how a combination of ambitious goals and robust incentives can transform a nation’s entire automotive industry.

Now, with the country on the cusp of achieving its goal of 100% all-electric new car sales by 2025, the Norwegian government is signaling a new phase in its EV strategy, proposing changes to its incentive program that include the introduction of taxes on electric vehicles.

We have often used Norway’s success in electrifying its vehicle fleet as an example of how quickly the electric transition can impact the automotive market under the right conditions.

They made it happen through a comprehensive package of incentives, including exemptions from purchase taxes and VAT, free access to toll roads and bus lanes, on top of properly taxing internal combustion engine vehicles.

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This resulted in EVs being the preferred choice for a vast majority of new car buyers. In 2024, a staggering 88.9% of new cars sold in Norway were all-electric, a figure that has continued to climb in 2025.

Gasoline and diesel cars are now obsolete in the Norwegian new car market, with a few hundred new cars per month, while EVs represent roughly 95-97%.

Finance Minister Jens Stoltenberg has announced mission accomplished (via Reuters):

“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved.”

With the finish line in sight, the Norwegian government is now fine-tuning its approach.

The current incentive program maintains the crucial VAT exemption for EVs, but only up to a purchase price of 500,000 Norwegian kroner (approximately $49,000 USD). This move is designed to target more expensive, luxury EVs, ensuring that the incentive benefits a broader range of consumers.

However, the latest budget proposal aims to reduce the EV tax exemption to vehicles costing 300,000 Norwegian kroner (~30,000 USD).

This would apply for 2026, and then the tax exemption would completely end in 2027.

Additionally, the government plans to increase taxes on new gasoline and diesel cars, further widening the cost gap between polluting and zero-emission vehicles.

However, the proposal still needs to be adopted by Norway’s government, and there is some opposition.

EV associations are advocating for a more extended phase-out period to ensure that the adoption rate doesn’t decline.

Electrek’s Take

For EV enthusiasts such as myself, Norway’s journey has been a source of inspiration and a powerful argument against the claims of EV detractors. The country has proven that with the right policies, a rapid and comprehensive transition to electric mobility is not just a distant dream but an achievable reality.

That said, I do understand that Norway has a lot going for it. It is wealthy. And therefore, it made the transition easier than in most other markets.

Regarding the policy changes, I wouldn’t interpret them as a sign of retreat from the country’s electrification goals. Instead, they represent a maturation of Norway’s EV policy.

The proposed changes to Norway’s incentive program are a logical next step in this evolution. As the EV market matures, it’s natural for governments to reassess and adjust their policies. The key is to do so in a way that doesn’t derail the progress that has been made.

However, I do agree with the local EV advocates that it would make sense to extend the phase-out to ensure the market maintains its current near-100% EV rate for a few years.

The rest of the world has much to learn from Norway’s experience. The country has provided a blueprint for how to kickstart an EV revolution, and now it is showing us how to manage the transition to a fully electric future.

The message from Norway is clear: the age of the internal combustion engine is over. The future of transportation is electric, and it’s happening now.