Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

No Bright Spot for Electric Cars - "a Wallet Issue"

Fuel prices have been pressed down and diesel is at its lowest level in three years. This means an even tougher situation for the electric car market. This is right now a wallet issue, says Tommy Letzén at the industry organization MRF.

» Updated: 19 September 2024, 23:09

» Published: 30 August 2024

No Bright Spot for Electric Cars - "a Wallet Issue"
Photo: Anders Wiklund/TT

Mobility Sweden predicted a bleak year for the electric car market, and so far, the prognosis seems to be correct. In July, 5,516 electric cars were registered, a decrease of almost 15 percent compared to July last year.

Looking at the first six months of the year, the number of new registrations has decreased by more than 19 percent.

Several factors are affecting the decreased desire to buy an electric car. The gloomy economy in recent years is one factor. But also, lower prices for both gasoline and diesel are contributing to slowing down electrification.

When we get a change, like we got with the reduction obligation and now with price reductions on fuel, it doesn't benefit the electric car despite the government's intended proposal in the autumn budget of a smaller increase in biofuel levels to ten percent, says Tommy Letzén at the industry organization MRF.

Used cars are doing better

In contrast to the sale of new cars, the used car market has not been affected by the tough headwind to the same extent. According to figures from the car brokerage Kvdbil, the sale of used electric cars increased by more than 66 percent during the first half of the year.

"Higher interest rates and the abolition of the climate bonus have made financing a new electric car very expensive. Many have turned to the second-hand market, where prices are lower", says Daniel Odsberg, sales manager at Kvdbil, in a press release.

MRF also sees an increased interest in used electric cars.

Electric cars are very expensive, and in the economic situation we have, the steps are difficult to take, which has made used cars do well and do better than last year, says Tommy Letzén.

Political measures

But even the interest in electric cars on the used car market is affected by a sluggish market, and ultimately, it's about money and households' ability to actually want and be able to invest, while seeing their living costs skyrocket in recent years, according to Letzén.

He believes, however, that interest in electric cars will increase again, not least when electric cars come down to a lower price level. At the same time, the government needs to make it easier for those who actually want to buy an electric car. One way could be to provide tax relief on electricity via car charging stations, according to Tommy Letzén.

This is currently a wallet issue, he says.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

New French obstacles for Airbnb
1 MIN READ

New French obstacles for Airbnb

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange rises after interest rate cut
1 MIN READ

Stockholm Stock Exchange rises after interest rate cut

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected