New car sales in Norway were dominated by electric vehicles last year, with EVs making up two-thirds of new vehicles sold.
Per a recent report from Reuters, Tesla was the top-selling new-car brand in the country, holding an 11.6 percent share of the overall Norwegian car market in 2021. The Tesla Model 3 sedan was the single most-popular new vehicle sold. Volkswagen was second place among car brands at 9.6 percent, with the VW ID.4 taking third place among singular models sold. The Toyota RAV4 hybrid was the second-most popular model, and the only vehicle in the top 10 equipped with an internal combustion engine.
Norway has a population of just 5.4 million people, but also the highest EV adoption rate in the world, per capita. Overall, new vehicle sales in Norway rose 25 percent last year to 176,276 units total. Sixty-five percent of those new sales were electric vehicles, a rise from 54 percent in 2020.
Norway aims to become the first country in the world to stop the sale of internal-combustion-powered cars, with new internal-combustion vehicle sales set to end by 2025.
The rise in electric vehicles sales is driven by tax exemptions, as well as hefty taxes placed on new internal-combustion vehicles. It’s estimated that EV tax cuts resulted in roughly $3.41 billion in lost revenue for the state. Looking ahead, Norway hopes to push EV adoption rates up to 80 percent of new vehicle sales this year. However, supply chain issues may slow that progress.
Last year, General Motors released a new Super Bowl video advertisement starring Will Ferrell, titled “No Way Norway.” In the ad, Ferrell learns that Norway has a higher EV adoption rate than the U.S., and convinces fellow celebrities Kenan Thompson and Awkwafina to join him in a journey to the Scandinavian country. The ad generated a considerable reaction, including from rival auto brands Ford and Audi.