Norwegian car dealerships report unprecedented electric vehicle sales following government tax proposals. Customers flock to showrooms nationwide, seeking to purchase before new VAT regulations take effect in January.
At Møller Bil in Stavanger, sales staff work overtime to handle the surge. "We sold 80 cars in the first half of October," said Daniel Bach Våge, a local manager. "Then we sold 280 vehicles in the second half."
The dramatic increase began after October 15, when the government's budget proposal revealed plans to add full VAT to electric car purchases starting January 1. A typical 520,000 krone electric vehicle would cost 570,000 kroner under the new rules.
Thor Arne Fjeld and his wife Lisbeth represent thousands of Norwegian buyers making quick decisions. "This triggered us to buy now," Fjeld explained after purchasing their Volkswagen ID.4. "The car we wanted would cost 50,000 kroner more in January."
Major dealership groups report sales doubling or tripling. Harald A. Møller, Norway's largest car retailer, experienced a threefold sales increase. Ford dealers describe what they call the "VAT ship" phenomenon, with customers rushing to buy before year-end.
Industry experts express concern about the long-term impact. "After the sweet itch comes the sour ache," said Egil Steinsland of the Norwegian Car Dealers Federation. "Sales will probably stabilize in 2026, but 2027 could be terribly quiet."
The bigger concern involves 2027, when the government plans to apply full VAT to the entire purchase price of electric vehicles. A 500,000 krone car would then cost 625,000 kroner—a 125,000 krone increase.
Dealerships now take unusual measures to protect customers. Many absorb potential cost increases if delivery delays push purchases into the new year. "We do this to create predictability for customers," VĂĄge explained.
The industry faces logistical challenges securing enough vehicles. "The challenge is getting enough cars quickly," said Helge Ellingsen of Kverneland Bil. "There's tremendous activity across the entire industry."
Consumer advocates warn about ordering vehicles without delivery guarantees. Most contracts contain clauses making customers responsible for cost increases from delays. The current buying frenzy reflects Norway's complicated relationship with electric vehicle incentives as adoption rates soar.
Norway leads the world in electric car adoption, with approximately 80% of new cars sold being electric. The country plans to phase out fossil fuel vehicles by 2025, but tax changes could slow this transition. Industry representatives note that replacing fossil fuel vehicles will take longer if electric cars become more expensive.
The current sales boom demonstrates how tax policy drives consumer behavior in Norway's car market. While dealerships enjoy record sales today, they worry about tomorrow's empty showrooms.