Norway announced the fulfillment of its 100% electric car mission and is preparing changes in incentives

Norway declares "mission accomplished" on 100% electric vehicles and proposes changes to incentives, UNN reports with reference to Electrek.

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"Now, with the country on the verge of achieving its goal of 100% sales of all-electric new cars in 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," the publication states.

As reported, Norway achieved this result thanks to a comprehensive package of incentives, including exemption from purchase taxes and VAT, free access to toll roads and bus lanes, and proper taxation of internal combustion engine vehicles.

This has led to electric vehicles becoming the preferred choice for the vast majority of new car buyers in the country. In 2024, an impressive 88.9% of new cars sold in Norway were all-electric, and this figure continued to grow in 2025.

Gasoline and diesel cars are now obsolete in the Norwegian new car market, with a few hundred new cars per month, while electric vehicles account for approximately 95-97%.

"We set ourselves the goal of making all new passenger cars electric in 2025, and... we can say that this goal has been achieved," said the country's Minister of Finance, Jens Stoltenberg.

With the finish line in sight, the Norwegian government is now refining its approach, the publication writes.

The current incentive program maintains an important VAT exemption for electric vehicles, but only up to a purchase price of 500,000 Norwegian kroner (approximately $49,000). This move is designed for more expensive, luxury electric vehicles, ensuring that incentives benefit a wider range of consumers.

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

This will take effect from 2026, and then the tax exemption will cease completely in 2027.

In addition, the country's government plans to increase taxes on new gasoline and diesel cars, which will further widen the cost gap with zero-emission vehicles.

However, the proposal still needs to be approved by the Norwegian government, and there is some resistance.

EV associations advocate for a longer phase-out period to ensure that the pace of adoption does not slow down.

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