Last year, the sale of electric cars in Norway increased by 48 percent, resulting in nearly two out of every three new cars being battery-powered, with Texas-based Tesla Inc (TSLA.O) being the most popular brand.

Norway, which produces oil, is exempting battery electric vehicles (BEVs) from taxes levied on competitors using internal combustion engines in order to become the first country to phase out the sale of petrol and diesel cars by 2025. (ICE).

Tesla took 11.5 percent of the overall auto market, giving it the number one brand for the first time on a full-year basis, ahead of Volkswagen (VOWG p.DE) of Germany, which took 9.4 percent.

On Sunday, the American automaker reported record quarterly deliveries that were significantly above Wall Street expectations, despite worldwide semiconductor shortages as it ramped up manufacturing in China. The Tesla Vehicle 3 was the year’s most popular model, followed by Toyota’s (7203.T) hybrid RAV4, the only car in the top ten with an internal combustion engine, and Volkswagen’s (VOWG p.DE) electric ID.4 in third.