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In March 2022, plug-in electric vehicles accounted for 55.6% of the total share of the Swedish automotive market, up from 37% of the market share in the same period last year. Pure electric power alone accounts for nearly a third of the market share, at 31.8%. Sweden's total car sales in March were 28,706 units, down 16.6 percent from pre-pandemic seasonal standards.
55.6% of new energy vehicles in March included 31.8% all electric (BEV) and 23.7% plug-in hybrid (PHEV). The share of new energy vehicles in March is second only to the peak in December last year (60.7%), indicating the growth momentum of new energy vehicles in 2022. The market share of new energy vehicles in the previous quarter was 53.6%, an increase of 35.6% year-on-year. Of these, 28.3% are pure electric.
The gasoline and diesel vehicle market share is close to a record low of 34.2 percent (compared to 32.2 percent in December last year).
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The Model Y is Sweden's most popular pure electric car
There were no major surprises in March, with Tesla reaching its usual peak of deliveries at the end of the quarter, and the Model Y is now firmly ahead of the Model 3. Volkswagen ID.4 and Kia Niro temporarily shrugged off their usual lead, finishing third and fourth respectively.
Sweden's own brand models, the Volvo XC40 and Polestar 2, continued to grow in March, ranking 5th and 6th respectively.
Just outside the top 20, three relatively new models are worth noting. The Volvo C40 is down a few spots from the previous month, but actually increased sales by 36% compared to the previous month and will soon be a regular in the top 20. In 22nd place, the value-added MG5 delivered its first vehicle (92) in Sweden. The Volkswagen Group's newest meb platform market entrant, Cupra Born, also began deliveries (72 units, 26th).
In the first quarter of 2022, kia Niro and Volkswagen ID.4 remained in the lead, although now the Tesla Model Y has replaced the Tesla Model 3 in third place. Local brands Volvo XC40 and Polestar 2 are in the top 5, with no obvious surprises for the rest of the brands.
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Sweden's electric vehicle share outlook
After delays in recent months, the Swedish government has now decided to adopt a financial subsidy scheme for new energy vehicles, giving buyers confidence that their spending will be subsidized in a timely manner, rather than waiting indefinitely.
Industry association Mobility Sweden (formerly BIL Sweden) reported that the Russian-Ukrainian crisis has led to disruptions in parts supply chains, disruptions in raw material supplies and rising energy prices, making the existing European automotive supply chain problems, especially around chips, worse. This will squeeze the volume of the automotive market in 2022. Inflation in general, particularly around energy, transportation and food prices, and subsequent consumer budget issues, could also squeeze market sentiment and demand for cars.
The advantage of new energy vehicles is that consumers are no longer worried about the sharp rise in fuel prices, however, the supply chain of new energy vehicles is also facing disruptions, and given their high price, the overall economic difficulties of consumers will definitely affect their needs. Although compared to last year, the absolute sales volume is not significant.
Since many of Sweden's best-selling pure electric vehicles are currently produced in Asia (Tesla, Kia, Hyundai, Volvo and Polestar), their parts, materials and energy supply chains may face fewer disruptions (though not spared).
Unfortunately for Europeans, any sustained energy price shock in Europe (along with raw material disruptions and overall inflation shocks) will not help international OEMs localize their manufacturing in Europe. Especially in the automotive industry and other heavy industrial manufacturing industries that require large amounts of energy and raw materials, both of which are now much more expensive in the European region.
Given the current uncertainty, it is difficult to predict the automotive market in the coming months. Overall, as mentioned above, pure electric vehicles will be more popular with new car consumers than fuel vehicles, which will accelerate the continued growth of their share this year, even if their absolute sales growth is slower, or even flat.