Vehicle registrations of the Chinese automaker XPeng in Norway crashed in January to 40 units, data released on Monday by the national Road Traffic Information Council (OFV) showed.
The figures fell by 78.5% from the 186 units recorded in January 2025 and crashed by 96.4% when compared with December.
The sharp decline comes as the Norwegian government’s decision to reduce the VAT exemption threshold for EVs from 500,000 Norwegian kroner ($51,800) to 300,000 Norwegian kroner ($31,100), from January 1.
As a result, customers purchasing electric vehicles priced above the 300,000-Norwegian kroner limit currently pay 25% VAT.
Originally scheduled to occur in 2027, the dissolution of the VAT exemption has been postponed to 2028.
However, Norway remains the world’s leading country regarding EV adoption, recently hitting an EV share of 97.6% last month and 95.9% last year.
Norway Debut and Portfolio
Back in September 2020, XPeng exported the first 100 units of G3 compact crossover SUV in Norway, becoming the first European market it expanded to.
A year later, the automaker introduced the first-generation P7 sedan.
The brand opened its first store in the capital, Oslo, in May 2022.
In 2024, it signed a partnership with the local distributor Bilia for both the Norwegian and Swedish markets.
In early 2023, the G9 full-size SUV was introduced in Norway, alongside Sweden, Denmark, and the Netherlands, followed by the G6 mid-size SUV/coupé in 2024.
On January 9, XPeng debuted the new P7+ model in Europe.
Currently, the cheapest model in the market is the G6, starting at 364,326.40 Norwegian kroner – equivalent to $37,700.
The G9 is available from 461,943 Norwegian kroner ($47,800), while the newly-launched P7+ is priced from 387,928 Norwegian kroner ($40,200).
XPeng in Norway
Last year, XPeng achieved a new sales record of over 4,400 deliveries in Norway – exactly 4,466 units.
The figures more than doubled (127.62%) from the 1,962 units registered in 2024.
The strongest sales result in 2025 for the Chinese brand was achieved in the last month of the year, with a total of 1,099 registrations.
The consumer rush – 357.9% year-on-year surge – was driven by the new EV tax changes that took effect on the first day of 2026.
XPeng Norway’s Managing Director, Claes Persson, confirmed last month the brand’s plans for the Nordic nation this year via LinkedIn.
These include doubling sales, expanding its retail network, hosting “even bigger and better events”, and “sharpening its focus on service and customer experience.”
Norwegian EV Adoption
According to OVF, Norway registered a total of 2,218 new passenger cars last month.
From the 9,343 units recorded a year ago, figures dropped by 76.3%.
The organization recorded 2,084 zero-emission vehicles last month. They achieved a market share of 94.0%, slightly lower than a year ago, when it stood at 95.8%.
Meanwhile, hybrid vehicles, including plug-in hybrids (PHEV), accounted for only 29 units, with a 1.3% market share.
Best-Selling Brands and Models
After Tesla ranked first last month, Volkswagen became the best-selling brand again in Norway last month, totalling 441 vehicles.
However, the German automaker’s sales still fell by 76.8% year over year.
Toyota ranked second, with 295 units, with Volkwagen Group‘s brand Skoda trailing, with 127 vehicles.
The US giant Tesla dropped to sixth place in terms of brands, achieving 83 deliveries in the country – an 88.0% year-on-year decline.
The Geely-backed Polestar sold 63 vehicles, while Lucid recorded only one vehicle registration.
Chinese brands BYD, XPeng, and Nio saw sales plunge over 70% year-on-year, with the Shenzen-based company’s 50 units marking the highest among them.
With a total of 299 registrations, Volkswagen‘s ID.3 led last month’s sales in the country.
It was followed by Toyota‘s first fully electric SUV – bZ4X – accounting for 184 units.
The Japanese automaker also assumed the third position with its Urban Cruiser B-SUV (98 vehicles).
Upcoming EVs
Following the debut of the P7+ sedan last month, XPeng plans to launch the first batch of its Mona series this year in Europe.
It was confirmed by the company’s founder and CEO He Xiaopeng during last year’s IAA Auto Show in Munich.
Additionally, the X9 model is also scheduled to enter European markets later this year alongside other models.
XPeng UK corroborated that a “mid-year” launch is expected for the seven-seat MPV in the British market.
European Presence
Last year, XPeng reached 60 countries and regions, doubling its global presence from 2024 and meeting its expansion target.
The automaker currently operates more than 1,000 stores across the globe, with 380 overseas – one-third of the total.
Despite the European Commission’s tariffs imposed on imported Chinese EVs, the company has been entering multiple markets on the continent.
XPeng has established 290 stores in 28 European markets since entering the region over five years ago.
The company started assembling two models in partnership with Magna Steyr in its Austrian factory in September.
