Tesla Sales Plunge 88% in Norway as Volkswagen ID.3 and Toyota EVs Overtake Model Y

The company is facing intensifying competition from both Chinese automakers and established European brands. Tesla’s dominance in Europe had already been questioned, but the scale of the collapse in the Norwegian market came as a shock.

January data shows that just 62 Tesla Model Y vehicles were sold in Norway, accounting for only 2.8% of total vehicle sales. Overall, Tesla delivered 83 vehicles in the country, an 88% year-over-year decline.

The sales crown was taken by the Volkswagen ID.3 with 299 registrations. It was followed by the Toyota bZ4X (184 registrations), Toyota Urban Cruiser (98), and Skoda Elroq (78). Even the relatively unknown Deepal S05 (75) outsold the Model Y, as did the Volkswagen ID.4 (69).

Despite Tesla’s struggles, electric vehicles remain overwhelmingly popular in Norway: 94% of all new cars sold were fully electric. Only 98 diesel vehicles were purchased, and gasoline cars accounted for just seven sales nationwide.

Tesla did post gains in several other European markets, including Spain (up 70%), Italy (75%), Sweden (26%), and Denmark (3%). These increases are likely tied to updated versions of the Model 3 and Model Y.

Still, the broader picture for Tesla in Europe is mixed. Sales fell by 42% in France, 31% in Belgium, and a steep 67% in the Netherlands. At the same time, new Chinese brands are entering the European market, and BYD is planning to begin production in Hungary in the second quarter, adding further pressure to the competitive landscape.