New car sales rose in Norway and Denmark last year, while Sweden and Finland saw sales decline, new data from Opplysningsrådet for veitrafikken (OFV) has found.
The Norwegian road traffic information council noted that sales in Norway rose by 1.37% in 2024, with Denmark seeing a marginal rise of just 0.17%. The picture was quite different in Sweden, however, where sales fell by 7.1%, and Denmark, which reported a 15.39% decline.
Growth in both Norway and Denmark was largely driven by the continuing popularity of electric cars, OFV noted. In Denmark, for example, electric vehicles accounted for 51.5% of new car registrations in 2024, boosted by favourable tax incentives and policies.
Government incentives
In Norway, meanwhile, a sizeable majority (90%) of new car sales were electric, again driven by low taxes and government incentives.
Changes to government incentives, meanwhile, were a key factor in the declines in both Sweden and Finland, with the removal of incentives to purchase electric cars, coupled with a reduction in fuel prices, leading to a decline in EV sales. In Finland, too, the share of electric car sales remained subdued, at just 30%.
The economic environment in the region also played a role in the decline of new car sales, with higher interest rates and inflation reducing purchasing power, particularly in Sweden and Finland.
“Although there are differences between the Nordic neighbours, we can say that high interest rates, inflation, and sharp price increases have left people with less financial leeway, which the business community has also largely noticed,” commented Øyvind Solberg Thorsen, director of OFV.
“New car sales often act as a kind of temperature gauge for people’s finances. During good times, we see an increase in new car purchases, while in more challenging periods, people hold onto their current vehicles for longer and delay upgrading. There’s no doubt about that.”
Economic conditions
Looking ahead to 2025, OFV notes that a recovery is likely, with economic conditions expected to improve, and interest rates falling in Sweden and other Nordic countries.
In particular, the group noted the incentives provided by the Danish government to boost sales in that country.
“With an electric car share of over 50%, Danes are seriously embracing electric cars,” commented Mads Rørvig, CEO of Mobility Denmark. “It is a positive development that we expect to continue.
“To avoid slowing down this progress, it’s crucial for politicians to maintain favourable framework conditions and incentives that keep electric cars attractive to Danes.” Read more here.
