The figure is the highest amount ever paid for a vehicle registration plate in Switzerland and "surpassed expectations", said the cantonal authorities in a statement.
The canton's road traffic and navigation service (SCN) launched the auction on February 15th with bids open for a month on a number of plates.
The VS 1 plate attracted 17 bidders, with the highest bid coming from a person using the pseudonym Matrans.
His or her 160,100 winning bid breaks the Swiss record previously set in the canton of St Gallen where 135,000 francs was paid for the plate SG 1.
The new owner of VS 1 will remain anonymous for the time being, said the canton. When the car is officially registered with that plate the owner can themselves decide if they wish any publicity.
The auction continues with five new plates, including VS 12 and VS 103, on the platform vs.ch/autos
The amount raised from the Valais' first ever licence plate auction will go into the canton's public coffers.