Norway Sells Almost Nothing But EVs Now — Is Australia Next?
Norway hit 97.8% EV market share in May 2026. Here's what that trajectory means for Australian EV buyers and novated lease decisions today.
Norway just posted a 97.8% EV share for new passenger car sales in May 2026, with the first five months of the year averaging 98%. Tesla led the chart, followed by Toyota and VW. That's not a typo — nearly every new car sold in Norway last month ran on electricity.
This matters beyond Nordic bragging rights. Norway's EV adoption didn't happen by accident — it was driven by sustained tax incentives, registration exemptions, and policy consistency. Australia is at a much earlier stage, but the direction of travel is the same. According to The Driven's report on the Norwegian figures, the market has essentially completed its transition in under a decade.
For Australian PAYG employees considering an EV today, the Norwegian precedent is a useful reality check: the technology is mature, mainstream brands are fully committed, and waiting for "better models" or "clearer policy" may just mean paying more later.
What this means for novated lease customers
Australia's FBT exemption for eligible EVs under the luxury car tax threshold remains one of the most straightforward tax concessions available to PAYG employees right now. The Norwegian data [Source 1] reinforces that EVs are not a niche product — they're where the global auto industry is heading, and the resale market is maturing to reflect that.
For novated lease purposes, choosing an EV today means accessing the FBT exemption on a vehicle class that is rapidly gaining mainstream residual value support. Potential savings through pre-tax salary packaging of an eligible EV are real — but the quantum depends on your income, the specific vehicle, and your employer's payroll setup. What Norway shows is that the underlying asset is not a bet on experimental tech; it's a bet on the direction the entire industry has already taken.
The practical question for most employees isn't "should I consider an EV?" — it's "which EV fits my driving pattern, and how do I structure the lease to maximise my after-tax position?" That's exactly what a properly set-up novated lease is designed to answer.
Common questions
Does Norway's EV dominance change anything about Australian EV tax rules?
No — Australian FBT law is set by the ATO and Treasury, not by international trends. But Norway's trajectory is frequently cited in Australian policy debates, and it demonstrates that the EV transition is irreversible, which matters when you're making a 3-5 year lease decision.
Are all EVs still FBT-exempt in Australia?
As of mid-2026, eligible battery electric and plug-in hybrid vehicles below the luxury car tax threshold may qualify for the FBT exemption — but rules can change. Always confirm current eligibility with a licensed adviser before signing anything.
Why does Tesla lead in Norway if other brands are catching up?
Tesla has had a multi-year head start on charging infrastructure, software, and model availability. The Driven's May 2026 report notes Toyota and VW are now in the mix, which signals the broader market is maturing — more choice, not less.
Will EV resale values in Australia improve as uptake grows?
Generally, broader adoption supports stronger resale markets — more buyers, more data, more dealer infrastructure. Norway is the leading indicator, but Australian residual values depend on local supply, charging rollout, and policy stability.
How do I know if a novated EV lease is actually worth it for me?
It depends on your gross income, the vehicle's drive-away price, your annual kilometres, and your employer's setup. The potential savings are meaningful for most mid-to-high income PAYG employees — use millarX's calculator or speak to our team for a number based on your actual situation.