Europe’s electric vehicle market leaders: Denmark, Sweden, and Finland

 Europe’s electric vehicle market leaders: Denmark, Sweden, and Finland

Differentiating by regional typology, nearly 73,000 EVs were registered in Sweden’s two urban regions in 2024, accounting for 60% of all new EV registrations. The 15 intermediate regions followed with almost 45,000 new EV registrations, representing 37% of the total, while the four rural regions accounted for just over 4,000 new EV registrations, making up 3%. Nearly half of new car buyers in urban areas chose an EV, while the share of EVs among new passenger car registrations was around 40% in both intermediate and rural regions.

Figure 6. Share of BEVs and PHEVs in new passenger car registrations in Sweden by regional typology, 2024

Note: The number of regions in each category is indicated in parentheses.

Selected national-level drivers of EV uptake

  • National purchase incentives and tax policy. Sweden has long used purchase bonuses and tax incentives to promote EVs. While earlier schemes offered direct purchase incentives, the introduction of a bonus–malus tax system in 2018 further accelerated EV adoption by offering financial incentives for BEVs and low-emission vehicles (typically PHEVs) emitting up to 60 g CO₂/km while imposing higher ownership taxes in the first three years on high-emission vehicles. In 2021, the bonus for BEVs was increased, while the incentive for PHEVs was reduced. While the direct purchase bonus ended in 2022, ownership tax advantages for EVs and for electric company cars continue to promote EV adoption among both private individuals and businesses. For example, companies pay Є0 annually to own a small electric car versus Є400 for an equivalent gasoline car, the largest gap among 31 European countries surveyed.
  • Public charging infrastructure and home charging potential. Sweden continues to expand its public charging infrastructure network. As of 2023, 51% of Swedes lived in detached and semi-detached houses, supporting potential access to home charging. However, only one third of new cars in 2024 were registered by private individuals.
  • Geographic patterns: Most EV registrations are in urban regions with higher population density, though adoption is also notable in intermediate and rural regions. The share of EVs in new passenger car registrations in urban regions in 2024 was 9 percentage points higher than in intermediate and rural regions.

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