Norwegian Residents Spent a Fortune on Cars. The Amount Surpassed a New Threshold
The average price of a new passenger car in Norway increased in 2025. The market ended the year with a significantly higher total sales value. Residents of the land of fjords responded in this way to regulations that came into effect on January 1, 2026.
The market was driven by tax changes surrounding electric cars.
Fot. Shutterstock, za: OFV
The data was published by the Norwegian Road Traffic Information Council (Opplysningsrådet for veitrafikken, OFV). The average price of a new passenger car reached 566,058 NOK, higher than the previous year. A very strong year-end finish had a major impact on the result.
Strong Year-End Finish in the Passenger Car Market
The total value of the passenger car market in 2025 amounted to 101.6 billion NOK. This is an increase of 29.6 billion NOK compared to 2024. There was a clear acceleration in registrations at the end of the year, visible throughout the entire fourth quarter.
During this period, 66,225 new passenger cars were registered, which is 79.5 percent more than the previous year. The market value in the fourth quarter alone reached 36.9 billion NOK. OFV points to the market's reaction to the announced tax changes.
During this period, 66,225 new passenger cars were registered, which is 79.5 percent more than the previous year. The market value in the fourth quarter alone reached 36.9 billion NOK. OFV points to the market's reaction to the announced tax changes.
From January 1, 2026, Norway introduced VAT on electric cars valued above 300,000 NOK.Photo: Wikimedia Commons/CC BY-SA 4.0/Wolfmann
Price Drop and Changes in Car Purchase Structure in Norway
Despite the high number of cars purchased, OFV recorded a drop in the average price in the fourth quarter. It amounted to 557,198 NOK, which was 27,212 NOK lower than the previous year. The price level was influenced by extensive advertising campaigns by manufacturers, most of which were based on promotions.
The report also shows a change in the purchase structure. The share of business customers in new passenger car registrations was 30.9 percent, 4.2 percentage points lower than in the third quarter.
The report also shows a change in the purchase structure. The share of business customers in new passenger car registrations was 30.9 percent, 4.2 percentage points lower than in the third quarter.
Growth also affected the van market. In the fourth quarter of 2025, its total value reached 7.1 billion NOK. The share of four-wheel-drive vehicles increased. OFV forecasts that in 2026 the market will remain active, but registrations will be distributed more evenly throughout the year.
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