Sweden Left Behind Amid EV Rush in Scandinavian Car Sales
By Kari Lundgren and Sanne Wass
By Kari Lundgren and Sanne Wass
December 11, 2024
A Tesla Model Y EV. (M. Scott Brauer/Bloomberg)
(Bloomberg) -- Electric car sales in Norway and Denmark outpaced fossil fuel models in November, driven by generous tax policies and incentives aimed at putting more zero-emission vehicles on the roads.
Battery models accounted for about 59% of new car sales last month in Denmark, up from just under 10% during the same month back in 2020, according to the Norwegian Road Federation, or OFV. In Norway they tallied close to 94%, while in neighboring Sweden, where policymakers have scrapped perks and lowered taxes on petrol and diesel, the share retreated, OFV said.
Norway became the first country to see EV brands overtake showroom-fresh fossil-fuel models in 2020, a surge that was underpinned by incentives ranging from reduced tolls to no or lower value-added taxes. The Danish government has adopted a similar approach in recent years, while last year Sweden removed its supports for electric car purchases, saying that their cost is starting to be comparable to petrol or diesel cars.
“The result is that more Swedes are now choosing alternatives to EVs when they buy a car,” OFV Director Oyvind Solberg Thorsen said.
Even so, Tesla Inc.’s Model Y was the second-most popular car in Sweden and Denmark in November, and topped sales in Norway.
The popularity of electric cars prompted Mobility Denmark, a trade association, to raise its expectations last week for how many EVs will be on Danish roads by 2030 to over 1.6 million, surpassing the government’s target of about 1 million.
However, the group said the forecast assumes that taxes for EVs remain unchanged and warned that removing incentives too early risks stagnating sales. In Norway, “policy, tax levels and incentives must be continued” to achieve a national goal of having 100% EV sales next year, OFV said.
©2024 Bloomberg L.P.
(Bloomberg) -- Electric car sales in Norway and Denmark outpaced fossil fuel models in November, driven by generous tax policies and incentives aimed at putting more zero-emission vehicles on the roads.
Battery models accounted for about 59% of new car sales last month in Denmark, up from just under 10% during the same month back in 2020, according to the Norwegian Road Federation, or OFV. In Norway they tallied close to 94%, while in neighboring Sweden, where policymakers have scrapped perks and lowered taxes on petrol and diesel, the share retreated, OFV said.
Norway became the first country to see EV brands overtake showroom-fresh fossil-fuel models in 2020, a surge that was underpinned by incentives ranging from reduced tolls to no or lower value-added taxes. The Danish government has adopted a similar approach in recent years, while last year Sweden removed its supports for electric car purchases, saying that their cost is starting to be comparable to petrol or diesel cars.
“The result is that more Swedes are now choosing alternatives to EVs when they buy a car,” OFV Director Oyvind Solberg Thorsen said.
Even so, Tesla Inc.’s Model Y was the second-most popular car in Sweden and Denmark in November, and topped sales in Norway.
The popularity of electric cars prompted Mobility Denmark, a trade association, to raise its expectations last week for how many EVs will be on Danish roads by 2030 to over 1.6 million, surpassing the government’s target of about 1 million.
However, the group said the forecast assumes that taxes for EVs remain unchanged and warned that removing incentives too early risks stagnating sales. In Norway, “policy, tax levels and incentives must be continued” to achieve a national goal of having 100% EV sales next year, OFV said.
©2024 Bloomberg L.P.
THE SCEPTICS REJOICE
By ZeroHedge - Dec 07, 2024
Global EV sales are slowing down due to high prices, concerns about charging infrastructure, and reduced government subsidies.
China's EV market is booming, thanks in part to government support and a robust supply chain.
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Now that the shine and allure of being the 'new fad' and government subsidies are starting to wear off - along with a marketplace full of super-saturated competition and robust supply - EVs simply aren't selling.
That was the topic of a new FT report that claims the auto industry’s shift toward EVs, once seen as essential, is now facing serious challenges.
It cites for example that Northvolt, Europe’s top battery producer, filed for bankruptcy last week, casting doubt on the region’s industrial strategy. Additionally, Stellantis announced the closure of its UK van plant, risking 1,100 jobs, while Volkswagen and Ford also warned of significant job cuts and plant closures due to weaker-than-expected EV demand.
And as we noted earlier this week, GM is taking a $5 billion charge to reorganize its Chinese business.
Now the U.S. risks falling further behind in its green transition as EV adoption lags and President-elect Trump’s plans to cut subsidies threaten progress. While President Biden aims for EVs to make up half of new car sales by 2030, they accounted for just 10% last year, according to FT.
And carmakers have scaled back production plans, with U.S. EV output expected to drop by 50% and European plans by 29% next year, according to Bernstein. By 2025, EV market share is projected to reach 23% in Europe and 13% in the U.S.
FT reported that the slow growth of EV adoption globally stems from high upfront costs, concerns about range and charging infrastructure, and fading energy price advantages due to geopolitical tensions.
Rising interest rates have further increased leasing costs. In Europe, EV prices have climbed from €40,000 in 2020 to €45,000 today, far above the €20,000 many consumers are willing to pay.
Meanwhile, inconsistent government subsidies have led to uneven adoption, with Germany and France cutting incentives, prompting concerns about declining EV sales and job losses in the auto industry.
China, by contrast, has successfully integrated its EV strategy, leveraging state-backed initiatives, subsidies, and a robust supply chain to dominate the market. More than half of new cars sold in China are now EVs or plug-in hybrids, aided by competitive pricing and innovative in-car technology.
Europe, constrained by free-market principles, cannot match China’s state-driven model and has resorted to imposing tariffs on Chinese EV imports. Despite setbacks, automakers in Europe remain optimistic, planning affordable EV models under €25,000 to meet stricter emissions targets, aiming to balance cost reduction with growing consumer interest in electric technology.
Bernstein analyst Daniel Roeska concluded: “The EV production forecast for 2025 has seemingly only gone one way — down.”
By Zerohedge.com
Global EV sales are slowing down due to high prices, concerns about charging infrastructure, and reduced government subsidies.
Major automakers are scaling back production plans and announcing job cuts in response to the weaker demand.
China's EV market is booming, thanks in part to government support and a robust supply chain.
Now that the shine and allure of being the 'new fad' and government subsidies are starting to wear off - along with a marketplace full of super-saturated competition and robust supply - EVs simply aren't selling.
That was the topic of a new FT report that claims the auto industry’s shift toward EVs, once seen as essential, is now facing serious challenges.
It cites for example that Northvolt, Europe’s top battery producer, filed for bankruptcy last week, casting doubt on the region’s industrial strategy. Additionally, Stellantis announced the closure of its UK van plant, risking 1,100 jobs, while Volkswagen and Ford also warned of significant job cuts and plant closures due to weaker-than-expected EV demand.
And as we noted earlier this week, GM is taking a $5 billion charge to reorganize its Chinese business.
Now the U.S. risks falling further behind in its green transition as EV adoption lags and President-elect Trump’s plans to cut subsidies threaten progress. While President Biden aims for EVs to make up half of new car sales by 2030, they accounted for just 10% last year, according to FT.
And carmakers have scaled back production plans, with U.S. EV output expected to drop by 50% and European plans by 29% next year, according to Bernstein. By 2025, EV market share is projected to reach 23% in Europe and 13% in the U.S.
FT reported that the slow growth of EV adoption globally stems from high upfront costs, concerns about range and charging infrastructure, and fading energy price advantages due to geopolitical tensions.
Rising interest rates have further increased leasing costs. In Europe, EV prices have climbed from €40,000 in 2020 to €45,000 today, far above the €20,000 many consumers are willing to pay.
Meanwhile, inconsistent government subsidies have led to uneven adoption, with Germany and France cutting incentives, prompting concerns about declining EV sales and job losses in the auto industry.
China, by contrast, has successfully integrated its EV strategy, leveraging state-backed initiatives, subsidies, and a robust supply chain to dominate the market. More than half of new cars sold in China are now EVs or plug-in hybrids, aided by competitive pricing and innovative in-car technology.
Europe, constrained by free-market principles, cannot match China’s state-driven model and has resorted to imposing tariffs on Chinese EV imports. Despite setbacks, automakers in Europe remain optimistic, planning affordable EV models under €25,000 to meet stricter emissions targets, aiming to balance cost reduction with growing consumer interest in electric technology.
Bernstein analyst Daniel Roeska concluded: “The EV production forecast for 2025 has seemingly only gone one way — down.”
By Zerohedge.com
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