Electric cars have become mainstream across much of the Nordics. Norway is close to fully electric, and Danish buyers are choosing EVs in record numbers. But in Sweden the transition has hit a bump in the road — and, remarkably, Finland has now overtaken Sweden in EV market share.
In August, battery‑electric vehicles accounted for just 34.1% of new registrations in Sweden. At first glance that might sound solid, but the figure is lower than a year ago — in fact it is 17.6 percentage points below the level recorded in 2023. In other words: the Swedish EV story has lost some of its spark.
Taxes and leasing shape the market
The explanation is a cocktail of shifting government policy and private household budgets. When Sweden scaled back EV purchase bonuses, consumer appetite for fully electric cars cooled. At the same time, plug‑in hybrids (PHEVs) have staged a comeback.
According to Bilstatistik.se, the number of privately registered PHEVs rose by 87% year‑on‑year, and they now account for around 22% of the market. Leasing is a major driver of this trend: with lower interest rates and aggressive campaigns, plug‑in hybrids are an attractive compromise for many buyers.
Norway surges ahead — Finland catches up
The contrast with neighbouring countries is stark. In Norway, 96.9% of all new cars sold in August were pure electric. Denmark recorded a 69% EV share, while Finland reached 37% — higher than Sweden.
That makes Sweden a paradox: a country widely regarded as a green frontrunner on many fronts, yet political stopgaps have slowed its progress on electrification.
From the new year, registration taxes on electric cars in Denmark are due to rise. Despite previous promises to avoid steep increases, the Danish government and tax minister Rasmus Stoklund have not yet published a detailed plan — and that uncertainty is worrying industry leaders.
What this means
The Swedish case shows how quickly progress can stall when incentives are withdrawn or political plans are unclear. For policymakers, the lesson is clear: maintaining long‑term, predictable support mechanisms is key to sustaining EV adoption. For consumers and fleets, the renewed interest in PHEVs underlines that affordability, monthly costs and leasing offers remain decisive.
