Norway's new car registrations plummeted 76.7 percent in January compared to the same month last year. This sharp decline follows a historic peak in 2024 when 179,549 new passenger cars were registered, setting a national record. The downturn marks a dramatic shift from the frenzied activity at dealerships nationwide before Christmas. Many consumers rushed to secure vehicles ahead of a new value-added tax on electric cars taking effect.
A Record High and Sudden Slowdown
Geir Inge Stokke, director of the Road Traffic Information Council (OFV), described the January figures as a predictable correction. He said the industry anticipated a slowdown after the pre-holiday surge. Stokke expects registrations to gradually recover as the market stabilizes. The steep drop is attributed to consumers advancing purchases to avoid the new tax, creating an artificial spike in late 2024.
While new car registrations had a weak start, the used car market showed resilience. There were 40,409 ownership changes for passenger cars in January, an increase of nearly 5 percent compared to January last year. Sales of used electric cars rose by 22.7 percent in the same period. Stokke notes this signals a maturing market. He says electrification is now making a clear impact in the used car sector, making electric vehicles a more accessible option for far more buyers than before.
Tax Policy Drives Consumer Decisions
Christina Bu, secretary general of the Norwegian Electric Vehicle Association, is not surprised by the volatility. She says this clearly shows how abrupt tax changes affect consumers. People think with their wallets when buying a car, Bu stated. The tax adjustment prompted a buying rush that distorted normal sales patterns. Bu emphasizes that policy stability is crucial for sustained market growth.
Norway reached its goal of fully electrifying new car sales in 2025. Bu stresses that this achievement does not mean the job is over. She points out that two out of three cars on Norwegian roads still run on fossil fuels. For these drivers to have the opportunity to choose electric, ambitious policies must continue in 2026. The transition requires consistent government support beyond initial targets.
Logistics Network Breathes After Strain
The sales frenzy had a direct impact on infrastructure. Drammen Port is the country's largest reception center for imported vehicles. It was hectic at the port at the end of last year, with over 30,000 cars received in the final two months alone. Now, it is calmer at the outlet of the Drammen River. Port director Arne Fosen calls this a normal breathing pause for a hard-tested logistics system.
Fosen says it is perhaps a bit pleasant to have a respite. He cautions against calling it too comfortable, but notes it is good for all involved to sort things out and get going again. There is space for more cars, but now they know what capacity they can handle when required. The port director expected a decline but does not believe it is a trend that will continue. He sees a January that was lower than January 2025 but still higher than January 2024, which he considers quite normal. Forecasts for February suggest that when that month is over, they will be ahead of schedule.
Underlying Market Strength Persists
The data reveals underlying strength in Norway's automotive transition. The rise in used electric car sales indicates broadening adoption beyond new vehicle buyers. This secondary market expansion is critical for achieving wider electrification goals. It allows more households to access electric technology at lower price points. The ownership change figures suggest continued consumer interest in mobility despite the new car slowdown.
Stokke anticipates a new uptick in registrations as the market adjusts. He cites the inherent demand for personal vehicles in Norway's geography and economy. The country's extensive fjord landscapes and dispersed population maintain a steady need for reliable transportation. Policy instruments like toll roads and parking benefits for electric vehicles still favor their adoption.
Path Forward for Electric Mobility
Christina Bu reiterates that the work is not done. She calls for sustained focus on charging infrastructure and incentives for used electric vehicles. The association will monitor how the tax change affects long-term consumer behavior. Bu emphasizes that Norway's leadership in electric transport depends on continuous policy ambition.
The situation at Drammen Port symbolizes the broader market rhythm. Fosen's perspective highlights the logistical realities behind sales statistics. His view that this is a temporary pause aligns with industry expectations of recovery. The port's experience underscores how national policy shifts ripple through supply chains and operational hubs.
Norway's car market remains a key indicator of its energy and environmental policy success. The January dip follows a predictable pattern after a policy-induced boom. The resilience in used car sales, particularly for electric models, offers a positive sign for the durability of the electrification trend. All eyes will now be on February and March data to confirm if this is indeed a normal breathing pause or the start of a new market dynamic.