Sweden’s new government has eliminated the state purchase subsidies that were available for both electric vehicles and plug-in hybrids.
As announced on the government’s website, vehicles ordered after 8 November 2022 will no longer be eligible for the so-called “climate bonus”.
“This new administration made the decision among a few people without consultation. Moreover, they communicated it one day before the party,” says Mattias Bergman, CEO at Mobility Sweden.
This meant that the people who decided at that time to opt for the bonus had only 24 hours to make their decision. Therefore, the dealerships remained open until midnight.
As in the case of Norway, Sweden has a highly developed electric vehicle market. By the end of 2020, according to the Swedish industry organization BIL Sweden, the share of 100 per cent electric and plug-in hybrid cars exceeded that of petrol and diesel cars.
This is precisely the reason for the new government’s drastic decision.
The purchase and running costs of these cars are now comparable to those of petrol or diesel cars and “therefore a state subsidy for market introduction is no longer justified”. This was reported by the new ruling party in Sweden.
“The impact will now be slower electrification than expected with subsidies. We have a very large market to conquer and they will not make the switch without the bonus,” Bergman explains to Portal Mobility.
He adds: “The market will continue to grow, because there are more car models, but the user will be affected by this decision”.
The country’s roadmap stipulates that by 2030, 80% of cars sold will be fully electric and 50% of 16-tonne heavy-duty vehicles will also be electric.
Currently, sales are over 60%, making it the best-selling type of technology in Sweden.
“This government has only been in power for a few weeks, so we don’t yet have a big picture of how it will unfold. But they have confirmed to us that they will follow the commitment they made to the Paris Agreement and Sweden’s targets,” says Mobility Sweden’s CEO.