Chinese electric vehicle brands are rapidly gaining ground in NorwayEurope’s most EV-friendly countryoffering a glimpse into the future of the continent’s auto industry. From the arrival of the first MG EV in 2020 to capturing over 10% of Norway’s market today, China’s EV push is accelerating fastand disrupting Tesla’s (TSLA, Financials) dominance in surprising ways.
Norway, which plans to end sales of non-electric passenger vehicles by 2025, has become a natural testing ground for EVs. And unlike the U.S. and European Union, the country has not imposed tariffs on Chinese-made electric vehiclesopening the floodgates for brands like BYD (BYDDF, Financials), XPeng (XPEV, Financials), MG, and Nio (NIO, Financials).
According to Christina Bu of the Norwegian EV Association, Chinese EVs have earned the trust of local buyers. Chinese automakers now offer at least 20 models in Norwaymany with advanced features at lower price points than their Western counterparts.
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Tesla remains the top-selling brand in Norway, especially following strong Model Y demand, but competition is heating up. Chinese-owned brands Volvo and Polestar also feature prominently in sales charts, though some analysts distinguish them from pure Chinese makes.
Felipe Munoz of JATO Dynamics calls Norway Europe’s laboratory for EVs, saying its openness, small size, and lack of a domestic auto industry make it ideal for newcomers. ING’s Rico Luman added that European automakers must offer more affordable models to competeespecially as middle-class drivers begin to adopt EVs in larger numbers.
This article first appeared on GuruFocus.