OSLO, Norway — China is hoovering up market share in electric vehicle-friendly Norway, posing significant competition to Elon Musk‘s Tesla and other Western auto giants.

From the first delivery of an MG car to the wealthy Nordic country in January 2020, Chinese EV brands have gone on to capture a combined market share of roughly 10%, driven by Beijing’s competitive pricing and advanced technology.

The explosive growth is particularly notable, given Norway’s decision not to impose tariffs on Chinese EV imports — as well as its reputation as the world’s most EV-friendly country.

Norway’s tariff policy sets it apart from both the U.S. and European Union, which have both slapped duties on Chinese-made EVs to protect traditionally dominant American and European brands.

Norway, which is not a member of the EU, has said previously that it is neither relevant nor desirable to slap tariffs on Chinese EVs. A Norwegian finance ministry spokesperson was not immediately available to comment when contacted by CNBC.

Christina Bu, secretary general of the Norwegian EV Association (NEVA), which represents electric car owners in the country, said that at least 20 different Chinese EV models are currently available in the Norwegian market.

She noted that the view on Chinese EVs among prospective Norwegian buyers has “changed a lot” in recent years.

“They see that [they are] good cars, technologically they are good and also quite competitive when it comes to price. So, it’s a really, really competitive EV market in Norway. We are at close to 94% market share in the first six months this year,” Bu told CNBC during an interview at NEVA’s office in Oslo.

Chinese EV manufacturers such as BYD, XPeng and MG were among the top 20-selling companies in Norway’s new car market last month, according to data from the Norwegian Road Federation (OFV).

Sweden’s Volvo and Polestar were also on the list. China’s Geely Holding Group holds a significant stake in both car manufacturers.

Tesla, meanwhile, remains the dominant player in Norway. The U.S. EV maker was by far the best-selling brand in Norway in June, with sales boosted by demand for the firm’s revamped Model Y sports utility vehicle.

Felipe Munoz, global analyst at research firm JATO Dynamics, said his own definition of a Chinese brand includes all businesses that make cars that are fully designed, conceived and produced in China — such as MG, which is part of China’s SAIC Motor.

The likes of Volvo, Polestar and Lotus, however, would be excluded, even if they are fully or partly owned by a Chinese original equipment manufacturer.

Based on this definition, Munoz said Norway is the European country where Chinese car brands have accumulated their largest market share at 10.04% between January and June 2025.

“Due to its regulation, culture, and size, Norway is Europe’s laboratory for EVs. It means that it is somehow the entry point for all the unknown brands willing to sell EVs in the rest of the continent,” Munoz told CNBC by email.

“It is easier to start there than anywhere in Europe and does not require big investments as in Europe’s big 5 markets. Besides, Norway does not have its own auto industry, meaning that it is easier for an outsider to gain traction without hurting the interests of anyone.”

Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, said surveys have shown that European drivers enjoy driving Chinese EVs.

“So, that is a real challenge for Tesla going forward, to compete with those new brands which are building up their presence in Europe,” Luman told CNBC’s “Squawk Box Europe” on Friday.

Asked whether Europe appears to be losing its EV battle with China, ING’s Luman said “Europe is catching up a bit,” but noted that China remains far ahead.

“There is also some backtracking in the U.S. so the EU and Europe in general is somewhere in the middle. We really need more new models and more affordable models to convince the middle-class driver to make the shift – and we’re not there yet,” Luman said.