The European Electric Car Report Edition 3 – 2021
Sweden (35.6%), Finland (25.9%), and Denmark (24.0%) all achieved greater xEV penetration levels, as did non-EU markets Norway (82%) and Iceland (51.5%), all of which are included in the EU fleet average objective. Sweden, which has been fueled by PHEVs up to now, helping its xEV volumes (Q1 2021: 32,388) surpass that of neighbouring Norway (29,789) this year, is expected to shift in favour of BEVs beginning in April thanks to a change to the Bonus Malus system that will reward BEVs with higher incentives while reducing PHEVs.
As a result, PHEVs had a late-March bump, accounting for slightly under every third passenger car and leading the 18 market region in both March and the quarter. BEVs will get SEK 70,000 (€6,900) starting in April, a SEK 10,000 increase. PHEVs will have a revised WLTP ceiling of 60g/km, down from 70g/km previously, and their bonus will be limited to SEK 45,000 (€4,400). As a result, it is projected that pent-up BEV demand will hit Swedish roads in April, while PHEVs will slow.
Meanwhile, in March, the UK reduced BEV purchase subsidies (max. GBP 2,500/€2,900) for vehicles with a maximum price of GBP 35,000, down from GBP 50,000 before, causing some manufacturers to decrease entry-level prices to within the new border within hours. The UK is in a critical year in which OEMs must satisfy independent CO2 targets, which is why, despite the subsidy drop, UK plug-in volumes are projected to stay strong this year. During the first quarter, the UK’s BEV volumes were second only to Germany and ahead of France.
Vehicle dimensions are also being influenced by EV purchasing subsidies. Demand for compact EVs is increasing as a result of German subsidies that favour smaller BEVs proportionally. VW’s eUp was the most popular BEV in Germany (Q1)