Economy
February 6, 2025
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Norway Set to Become First All-Electric Vehicle Nation

Norway is set to become the first country in the world to phase out new gasoline and diesel car sales entirely, as 96% of new car sales in early 2025 were electric. The country, which has vast oil and gas reserves, has positioned itself as a global leader in sustainable transportation, with electric vehicle (EV) sales skyrocketing from less than 1% in 2010 to nearly 89% in 2024. Officials attribute this success to long-term policies supporting EV adoption, including tax exemptions, charging infrastructure investments, and access to bus lanes.
Norway Set to Become First All-Electric Vehicle Nation
Hyundai - Unsplash

Norway is poised to make history by becoming the first country to eliminate gasoline and diesel cars from its new car market, marking a major milestone in sustainable transportation.

Despite being one of the world’s largest oil and gas producers, the Scandinavian nation has fully embraced electric mobility. In 2024, 88.9% of new car sales in Norway were electric vehicles (EVs). In the first few weeks of 2025, that number has surged past 96%, putting the country on track to reach 100% EV sales by the end of the year.

A Celebration of Change

To mark the historic milestone, the Norwegian EV Association (NEVA) is organizing a celebration on February 13, where policymakers and stakeholders will gather to recognize the country’s EV success.

"We have already invited a lot of politicians and different stakeholders to a party on the 13th of February... Everyone says we will end somewhere between 95% and 100% this year," said Christina Bu, secretary general of NEVA.

She emphasized the significance of this achievement, particularly at a time when global policies on EVs face uncertainty, such as U.S. President Donald Trump’s decision to revoke Joe Biden’s executive order aiming for 50% EV sales by 2030.

The Policies That Drove the Shift

Unlike other nations that banned combustion engine cars, Norway focused on incentives rather than prohibitions. Key policies driving the EV revolution include:

  • VAT and tax exemptions for EV purchases.
  • Discounts on road tolls and parking fees for EVs.
  • Access to bus lanes, reducing congestion for EV drivers.
  • Massive investment in public charging infrastructure, making it easier to own and operate an electric car.
  • Cheap electricity, thanks to Norway’s abundant hydropower resources.

Deputy Transport Minister Cecilie Knibe Kroglund described this as "the new normal."

"Transport is a big part of the answer for climate-friendly solutions. We need to make sure that some of the success we have had with cars can be used for other areas of the transport sector," she said.

Norway also aims to electrify city buses by 2025 and make 75% of heavy-duty transport renewable by 2030.

Internal Combustion Cars Still Exist But Not for Long

While new car sales are overwhelmingly electric, gasoline and diesel cars still make up 72% of Norway’s total vehicles. However, this is changing rapidly, especially in urban areas.

  • Oslo: Over 40% of all cars are now fully electric.
  • Nationwide: 28% of total vehicles are EVs.

Many Norwegian drivers who were once skeptical of EVs have completely changed their mindset.

Global Comparison: How Other Countries Stack Up

Norway is far ahead of other nations in EV adoption:

  • United States: Only 8.1% of total car sales were electric in 2024.
  • United Kingdom: Nearly 20% of new car registrations were EVs in 2024.
  • Germany: The country removed EV subsidies in late 2023 due to budget constraints, leading to declining sales.

Rico Luman, an economist at Dutch bank ING, believes that while Norway’s success is an example for others, its wealth and cheap electricity give it unique advantages.

As Norway nears 100% electric new car sales, the country remains a global leader in clean transportation, proving that a complete shift to electric mobility is not only possible but inevitable.

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