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Chinese EV Makers Accelerate in Norway as Market Share Hits 10%

Chinese electric vehicle (EV) manufacturers are rapidly expanding their presence in Europe, with Norway emerging as a key beachhead. Since the first delivery of an MG electric car in January 2020, Chinese automakers have grown to claim more than 10% of Norway’s EV market, according to recent data. That growth comes amid favorable policies, highly receptive consumers, and the absence of protectionist tariffs — setting the Nordic nation apart from the U.S. and the broader European Union.

Norway, known as the most EV-friendly country in the world, is providing fertile ground for Chinese brands like BYD, XPeng, and MG (owned by China’s SAIC Motor) to build brand equity, test new models, and scale their European operations. Analysts and industry experts are now calling Norway “Europe’s EV laboratory” — a proving ground for the next generation of electric mobility.

No Tariffs, No Domestic Auto Industry — A Perfect Entry Point

Unlike the U.S. and EU, which have imposed steep tariffs on Chinese EV imports to protect domestic automakers, Norway — a non-EU member — has opted against such measures. This tariff-free environment, combined with the fact that Norway does not have its own domestic car manufacturing industry, has allowed foreign automakers to enter the market without backlash.

A spokesperson for Norway’s Ministry of Finance declined to comment directly but has previously stated that tariff protections on EVs are “neither relevant nor desirable.”

Christina Bu, Secretary General of the Norwegian EV Association (NEVA), said Chinese cars are being increasingly recognized by Norwegian drivers for their technological quality and competitive pricing. “There are now over 20 Chinese EV models available in the Norwegian market. Public perception has changed a lot. These are good cars — not just affordable, but advanced,” Bu told CNBC in an interview at NEVA’s Oslo headquarters.

She added that EVs now make up nearly 94% of new vehicle registrations in Norway for the first half of 2025, underlining how far the country has come in electrifying its fleet.

Market Share Milestone: Over 10% in 2025

According to data from the Norwegian Road Federation (OFV), several Chinese EV brands made it into the top 20 selling automakers in Norway last month, including MG, BYD, and XPeng. Felipe Munoz, global automotive analyst at JATO Dynamics, estimated that from January through June 2025, Chinese-designed and manufactured EVs claimed 10.04% of total new vehicle sales in Norway.

Munoz clarified that his classification includes only brands fully designed and produced in China. That excludes companies like Volvo and Polestar, despite their Chinese ownership through Geely, and even Lotus, which is also now under Chinese control.

“Norway offers a unique combination of consumer openness, progressive policy, and market size,” Munoz explained. “It’s easier and more cost-effective for Chinese brands to gain a foothold here compared to the larger and more complex markets of Germany, France, or Italy.”

Tesla Still Leads, But Competition is Growing

Tesla continues to dominate Norway’s EV sales rankings, bolstered by strong demand for its refreshed Model Y SUV, which was the top-selling vehicle in June. But analysts warn that the competitive landscape is evolving quickly, and new entrants are chipping away at its dominance.

“Chinese EV makers offer highly competitive features at lower price points,” said Rico Luman, senior sector economist at ING, in an interview with CNBC’s Squawk Box Europe. “Consumers across Europe, including in Norway, are increasingly drawn to their vehicles.”

Luman said Tesla’s biggest challenge going forward is maintaining its edge as Chinese brands scale their operations, expand into new European markets, and rapidly improve product offerings.

Europe’s Middle-Class Conundrum: Affordable EVs Needed

While Europe is not falling behind entirely in the EV race, Luman noted that the region still lacks the diversity and affordability of models needed to drive mass adoption. “We’re not there yet,” he said, referring to middle-class access to electric vehicles.

In contrast, Chinese automakers are rolling out more cost-effective models at a faster pace, often including advanced features that rival or exceed those found in premium Western models. This is one reason why China accounted for nearly 60% of global EV exports in 2024, with a growing share headed to Europe.

Looking Ahead: Will the Rest of Europe Follow Norway’s Lead?

Norway’s unique position — no tariffs, no legacy auto industry, and early EV adoption policies — may not be replicable across Europe. But it offers a clear glimpse into what the continent’s future could look like as Chinese EV brands seek to expand beyond Scandinavia.

As geopolitical tensions over trade and technology continue, how the European Union responds to China's growing automotive footprint will be critical. Norway’s open-door strategy has paid off in terms of consumer choice and rapid EV adoption, but whether that model scales across the EU remains an open question.

For now, Norway continues to serve as both a launchpad and a litmus test for China’s EV ambitions in the West.