Electric Vehicle Adoption Across EFTA and the UK

Last Updated on: 5th August 2025, 12:07 am

Electric Vehicle Adoption Across EFTA and the UK

CleanTechnica reported on the European Union’s recent electric vehicle sales growth last week. The report didn’t include the European Free Trade Association (EFTA) countries — Iceland, Liechtenstein, Norway, and Switzerland — and the United Kingdom because of the unique landscape of electric vehicle adoption in that region. The European Automobile Manufacturers’ Association (ACEA) vehicle sales report for the first half of 2025 didn’t make any analysis of EFTA + UK for the period covered (up to the 1st half of 2025).

I have no idea why the EFTA and UK were lumped together in the ACEA report, and I can only guess that keeping tabs on the 27 member countries of the EU matters in terms of economic policy analysis and direction setting. Whatever it is, the whole of Europe (that means EU27+EFTA+UK) is rapidly approaching a tipping point towards full electrification of new car sales. Of course, there will be persistent challenges, underscoring the critical role of policy and consumer sentiment in accelerating the transition from fossil fuels.

UK BEV adoption is driven by fleet sales

In the United Kingdom, the new car market experienced a modest expansion in 2024, with total registrations reaching just over 1.95 million units. Battery electric vehicles, or BEVs, were a significant part of this growth, with 381,970 units sold, capturing a 19.6 percent market share of all new car registrations. This represented a substantial 21.4 percent increase over BEV sales in 2023. Plug-in hybrid electric vehicles, or PHEVs, also contributed, with 167,178 sales in 2024, accounting for 8.6 percent market share. Combined, BEVs and PHEVs achieved a total plug-in market share of 28.2 percent in 2024.

The momentum continued into the first half of 2025, with preliminary data indicating that battery electric car sales in the UK rose by 34.6 percent to 224,838 units. Electric sales accounted for 21.6 percent of all new car sales during this period. When combining BEVs and PHEVs, the result is a 32.1 percent share of all new registrations in April 2025. However, despite this growth in volume, the overall BEV market share remains below the UK government’s 28 percent Zero Emission Vehicle Mandate target for 2025.

A notable trend in the UK is the primary driver of this expansion: growth was almost entirely propelled by corporate and fleet purchases, which benefited from compelling tax incentives. In stark contrast, private buyer registrations for BEVs experienced an 8.7 percent decline in 2024, with only one in ten private buyers choosing an electric vehicle. Hybrid electric vehicles, or HEVs, were the second most popular powertrain among private buyers in 2024, commanding 16.0 percent of demand.  

Norway leads the whole of Europe at 92.7% adoption

Norway continued to solidify its position as the global leader in EV adoption. In 2024, an impressive 88.9 percent of all new passenger cars sold were fully electric, a significant increase from 82.4 percent in 2023. This trajectory places Norway firmly on track to achieve its ambitious goal of 100 percent electric new car sales by 2025.

In the first half of 2025, Norway maintained its exceptionally high adoption rates, with the annual average BEV ratio reaching 92.7 percent. The combined BEV and PHEV market share for Norway was an outstanding 96 percent in the first half of 2025. This unparalleled success is a direct consequence of Norway’s consistent, long-term policy approach, which includes comprehensive tax exemptions for EVs and high taxes on fossil fuel vehicles.  

Slower in Switzerland

Switzerland experienced a notable slump in electric vehicle sales in 2024 after several years of strong growth. A total of 46,500 new electric vehicles were registered, 6,000 fewer than in 2023. Consequently, the market share of all-electric vehicles among total new registrations fell from 20.7 percent in 2023 to 19.0 percent in 2024. Plug-in hybrid vehicle registrations also saw a decrease. The combined market share for BEVs and PHEVs stood at approximately 27.5 percent in 2024. This downturn continued into the first half of 2025, with total car sales decreasing by 6.8 percent to 112,799 units. BEV sales in the first half of 2025 dropped by 1.6 percent, resulting in a market share of approximately 14.3 percent for all-electric vehicles. During this period, 24,184 electric vehicles and 11,812 plug-in hybrids were newly registered. The decline is largely attributed to the extension of vehicle taxes to electric vehicles since the beginning of 2024, removing a previous financial advantage alongside persistent concerns about high prices and limited home charging options.

Iceland and Liechtenstein

Iceland also demonstrated strong growth in electric vehicle registrations in the first half of 2025. In the first 17 weeks of the year, 1,413 fully electric models were registered, representing approximately one in every three new registrations. Total new car sales for the first half of 2025 reached 7,838 units. Conventional hybrids also performed strongly with 1,033 units, and plug-in hybrids added 941 units during the first 17 weeks. The combined BEV and PHEV market share for Iceland stood at approximately 54.6 percent in the first 17 weeks of 2025.   

For Liechtenstein, specific electric vehicle sales data for 2024 and 2025 is not explicitly available and is generally integrated into broader European market statistics.

My humble analysis

Comparing these markets reveals a clear pattern: consistent and comprehensive policy support, as exemplified by Norway, is paramount for a rapid and sustainable EV transition. The UK’s situation highlights the difficulty of achieving ambitious electrification goals without robust demand-side incentives for private buyers, while Switzerland’s trajectory serves as a cautionary example of the negative consequences that can arise from prematurely withdrawing policy support.

The broader European market saw an average BEV share of 14 percent in 2024, rebounding to 17 percent in the first half of 2025. The combined BEV and PHEV market share averaged 22 percent in Europe in 2024 and increased to 25 percent year-to-date in 2025. These figures underscore that while the overall European market is progressing, the pace and nature of EV adoption vary significantly by country, heavily influenced by local policy decisions and consumer readiness.