Technology Collaboration Programme by:

Technology Collaboration Programme by:

Sweden

EV Adoption

Major Developments in 2023

The uptake of zero-emission vehicles slowed in Sweden compared to the figures published in 2022. There are a few changes that have most likely led to this, such as the lowered government incentives and high living costs.

A total of 298,107 passenger cars were registered in 2023, which is a slight increase of 0.4 percent compared to 2022. The share of rechargeable cars increased marginally from a share of 56 percent in 2022 to just under 60 percent, where the
share of electric vehicles (EVs) amounted to nearly 39 percent and plug-in hybrids to 21 percent. In numbers, EVs increased by 18 percent, while plug-in hybrids decreased by just over 8 percent. At the end of 2022, the EV subsidy for electrified vehicles was cancelled.

During the grant period 2019 – 2022, the rate of increase in battery electric vehicles (BEVs) jumped to 80 percent per year. However, in 2023, the first year without the grant, it fell to 50 percent per year which is comparable to the development of the
years before the grant was introduced. The growth in EVs took place on the corporate side, contrasting with the low increase of private EVs due to the economic climate and the removal of the climate bonus.

In 2022, private customers drove the electrification, with 56 percent of the new EVs. In 2023, the share of private customers is down to 33 percent and it is again the business side that is driving the electrification. However, during 2023 the fleet share
of BEVs surpassed plugin hybrid vehicles (PHEVs) for the first time. For light trucks, new registrations amounted to 43,703, an increase of about 27 percent compared to 2022. The proportion of EVs increased from about 15 to about 20 percent. This increase is partly due to the improved availability of suitable EVs, allowing companies to change their vehicle fleet to a better operating economy and to meet customers’ demands for non-fossil fuels. However, the rate here too decreased after the climate bonus was abolished in November 2022.

The heavy trucks, 16 tons or more, increased during the year by about 21 percent to 6,620. Of the newly registered trucks, 4.3 percent were electric, compared to 2.7 percent in 2022. The bus market decreased by about 10 percent compared to 2022,
ending with 1,118, which is explained by the fact that the market varies greatly depending on public procurements of city buses. The proportion of electric buses HEV TCP Annual Report 2024 SWEDEN 196 was around 28 percent, which is an increase compared to 21 percent in 2022. During 2023, the Swedish vehicle manufacturers Volvo and Scania have reported progress in the development of electrified heavy-duty vehicles.

Funding and Research

The Swedish Electric Transport Laboratory, SEEL, is an electromobility test centre for electric and charging vehicles. The purpose of the investment is to strengthen the conditions for cooperation in electromobility. Large players – as well as small and medium-sized companies – in the automotive industry, aviation industry and shipping can develop technology in relevant areas and meet on this common platform. Smaller companies that lack their facilities also get quick access to important
resources. The actors can together benefit from shared knowledge within the technology shift that is now taking place. Through the centre, researchers at colleges, universities and research institutes will have access to an advanced and open
research infrastructure and collaboration with companies. SEEL had inaugurations for its three locations in September 2023 and is now in operation.

Industriklivet, The Industrial step program can provide support for, e.g., strategically important initiatives such as the application of new technology, or other innovative solutions within the industry that significantly contribute to reducing greenhouse gas emissions in society, for example in the areas of batteries, hydrogen, and green steel. The program is handled by the Swedish Energy Agency.

Outlook

Regarding passenger vehicles, there is a risk of a further dampened increase in the share of newly sold, rechargeable cars in Sweden through 2024. This is due to a continued level of relatively high interest rates, high electricity prices, removal of
the reduction obligation and the removed environmental car premium in November 2022. At the same time, however, several of the vehicle companies have lowered the prices of new electric vehicles. A very cold winter in Sweden has also put EVs
and their batteries to the test. A significant reduction of range has been observed at temperatures between -20°C to -40°C.

However, the expansion of the charging infrastructure seems to continue, and perhaps, especially concerning the heavy-duty side, where the Swedish state steps in with relatively large funds in support.

The substantial increase in electricity prices in Sweden since 2022 has led to increased investments in solar cell installations, which in general is seen as an asset when households have switched to rechargeable vehicles. In the future, it will be following the development of innovative technologies that use the car as an energy/ power storage for local residences (V2H) and in the electricity grid (V2G).

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