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More than half of new cars now run on electricity
Flere vælger en elektrisk model, når de køber en ny bil. (Arkivfoto). - Foto: Mads Claus Rasmussen/Ritzau Scanpix

More than half of new cars now run on electricity

The curve has really broken for the sale of electric cars in Denmark, which in July made up more than half of the new cars. Supply and taxes will be decisive.
1. AUG 2024 14.50

You don't have to go back many years before electric cars were a rare feature on Danish roads. But in recent years, development has been rapid. Most recently, electric cars made up 52 per cent. of all the new cars that were sold in July in Denmark. It just surpasses December in 2023 with 51 per cent. and is thus the highest share in a month. This is shown by figures from the industry organization Mobility Denmark, which represents the Danish car importers.

- The sales figures in July are remarkable, because we realize that electric cars make up more than 50 percent of sales, and that is quite a milestone. It is within a short number of years that we have gone from a very modest number of electric cars to now accounting for over half, says Mads Rørvig, who is the managing director of Mobility Denmark.

A total of 11,517 cars were registered in July, of which 52 per cent. i.e. were electric cars.

The total number of newly registered cars is roughly at the level of July 2023. But the number of new electric cars on the roads has taken a significant leap.

This year, the number of registered electric cars in July was 69 per cent. higher than in July 2023, according to Mobility Denmark.

- It is a mix between the fact that new different models have come on the market and that the politicians have kept the taxation of electric cars at a low level. That combination means that we break the record in the proportion of electric cars, and that we are also the country in the EU, at least, that sells the most electric cars in percentage terms, says Mads Rørvig.

FDM fears decline in sales

In the car owners' organization FDM, head of department Torben Lund Kudsk says that they are worried about whether sales can continue to rise.

- The electric cars that sell really well are still cars that are historically somewhat more expensive than the cars Danes have bought on average. So the question is how many Danes can actually afford to buy electric cars, which may cost a total of DKK 400,000-500,000, he says.

- We are actually quite worried that we risk seeing a slowdown in sales if there are not some cheaper electric cars that are good and usable soon, he says.

One must, among other things, look to Chinese manufacturers, who are expected to send cheaper electric cars with good functionality to the market in the coming years, Torben Lund Kudsk believes.

But the EU Commission has decided to introduce a punitive tariff on the Chinese cars, and therefore it is still uncertain what this means for prices for consumers.

Low taxes push sales

At the same time, it is also decisive what the politicians decide should happen with the tax on electric cars in Denmark, according to both FDM and Mobility Denmark. It is politically determined that electric cars and hybrid cars are taxed cheaper than petrol and diesel cars.

According to the latest agreement from 2020, electric cars with a price below around DKK 400,000 are largely exempt from tax, just as more expensive electric cars are also released cheaper than otherwise.

This means, for example, that a Tesla Model 3, which in 2020 cost DKK 482,200, will be exempt from DKK 176,000 in registration tax, according to the text of the agreement.

However, with the latest agreement, it is planned that the taxes must be phased in from 2026-2030, unless the Folketing decides otherwise. A decision must be made on this in 2025.

At Dansk Industri, branch director Thomas Møller Sørensen would very much like the low registration tax on electric cars to be frozen until 2030.

- The Danes have really created a momentum in the green transformation of the car park. As good news as it is for the climate, it is also an equally fragile situation.

- We know from the countries around us that sales of electric cars can quickly decline if support from the state does not continue, he says in a written comment.

/ritzau/

This article has been automatically translated from danish.
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