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Global EV Transportation Review

Key Regional Markets


Denmark has been relatively behind the curve in the larger European region’s trend of electric vehicle adoption. This might change for the better, as the automotive sales of 2022 indicate. The purchase preferences are rapidly shifting in favour of electric vehicles, with plug-in hybrids filling a residual role. The policy push in electric bus procurement helps add to the demand momentum. The rapid rise in demand could potentially get hamstrung for inadequate charging infrastructure without timely capacity addition. The market opportunity thus remains high.

GDP (Current Prices) USD (2021)
GDP Growth Forecast (constant prices) (2021-2025)


EV Penetration
37% (battery electric) of the total new passenger vehicle sales as of December 2022
EV Target
775,000 electric and hybrid EVs by 2030
Planned Year of Phasing Out ICE Vehicles

Renewable Energy Mix

Trends in Share of Passenger Electric Vehicle Sales

Source: Association of Danish Car Importers

Danish electric vehicle market closed the year 2022 with a record sale, just as was the case in previous year. Within mid-October 2022 the country’s electric vehicle sales touched the 100,000-unit mark. It is thus expected to gradually reach the tipping point similar to the direction seen in other leading markets as Norway and Finland. The strength of demand is also supported by the fact that the electric vehicle sales growth contrasted the sluggish growth in overall passenger vehicle market.
Source: Association of Danish Car Importers

The pattern indicates a steady shift in favour of battery electric passenger vehicles, reversing the trend of plug-in hybrids holding the dominant share. The demand has been rising at a fast clip, reflecting in part by major automakers such as Tesla (ranking among the highest) expanding their sales outlets in the country. Imports from neighboring countries added fillip to the Danish market sales of passenger electric vehicles. An arbitrage opportunity, arising from subsidy-supported cheaper vehicles (Germany in particular), were resold at Denmark. The latter’s higher import duties made the vehicles dearer. The gap may close progressively with German subsidies expected to taper off in 2023.

Electric buses show similar levels of growth in penetration in the existing transport fleet. For the period ending October of 2022, about three-quarters of the new bus registrations were electric. The progress achieved thus has put the country among the leading ones in the region for its electric bus adoption. At least six cities of the country are set for complete fleet replacement over the next 6-7 years.

Charging Infrastructure

Trend in Charging Infrastructure

Source: European Alternative Fuels Observatory
There is discernible growth in the charging infrastructure since late 2021. Notably, the Danish municipalities are investing considerable amounts towards developing the charging infrastructure to meet climate friendly objectives in their respective jurisdictions. Private sector plays an important role in this regard, as has been reflected in some of the recent measures. The charging operator Clever in this regard presently has a key role, being the entity with the largest operational network. The country’s charging network reach though is still far from optimum levels as the rapid electric vehicle ownership rapidly outstrips available public charging points. In July 2022, the motorist federation FDM ranked Denmark as Europe’s worst for its density of charging points. The municipality of Frederiksberg’s density of 3.5 per 1,000 residents is the highest in the country. Copenhagen is at 2.6 while the national average is at 0.8. Beyond public charging network there are the exclusive charging points from automakers. Tesla is the most prominent due to the share of total sales. In Denmark, Tesla has 16 Supercharger (branded to refer fast-charging), marking a sharp rise from the nine in 2019.

Policy Regulation

Denmark’s stated goal of transport electrification entails getting 1 million electric and plug-hybrids by 2030. This target received Parliamentary approval for funding in 2020. The available support in this direction is based on fiscal measures for the zero- emission vehicles. Unlike its European counterparts though, the regulatory framework does not offer purchase incentives to subsidise the upfront cost. For zero-emission vehicles, the support measures include – payment of just 40% of registration tax, additional DKK167,500 worth of deduction in the registration tax incidence, and DKK1,300 worth of deduction in taxable value. A somewhat graded offering is made available for other vehicles that do not exactly qualify as zero-emission. For those vehicles with emissions at less than 50 gm CO2/km, the support available includes – 50% of the full registration tax, additional DKK48,570 of registration tax deduction, and DKK1,300 deduction of taxable value. An additional tax benefit was introduced for the period 2023-2026. For the company-owned zero-emission vehicles, a deduction worth DKK15,000 on tax-basis was to be made available. This would be in addition to the DKK30,000 supplement for tax base of the low-emission vehicles such as plug-ins. Similar few support measures are available for electric vehicle charging. This includes favourable tariff for commercial charging stations, exemption from parking fees for the electric vehicles, etc. However, such measures vary across the local authorities and municipalities for the specific objectives they have with related budgetary outlays.

Market Opportunity

There is a rising pressure on authorities to scale up the charging capacity. An indication of upcoming opportunities in this regard is found in the tenders for capacity development. In November 2022, the Dutch charging operator PowerGo and Danish charging platform Spirii won three tenders for installing 178 AC charging stations across municipalities of Vejle, Vejen and Gladsaxe. The operation will be led by PowerGo, while Spirii will provide the platform and software application.

The leading Danish charging operator Clever is in the process of a significant network expansion. As of September 2022, it engaged Compleo Charging Solutions AG with a major order, meant to fulfill part of Clever’s goal of 9,000 new public charging stations by 2025. The planned charging stations of the order are likely to involve pair of 22kW points, following a pattern of similar previous deployments. It is also expected that the charging services’ segment could progressively face a rise in competition and added differentiation in services by operators.

In April 2022, the Danish energy company EWII signed a long-term agreement with the Copenhagen Airport for supply and installation of 1,350 charging stations over a period of 10 years, aiming about 10% of the airport’s vehicle parking capacity. The planned capacity includes 1,320 charging stations at 22kW, while the rest are to be 180kW DC-based ones, and are to be built in cooperation with entities ZAPP Mobility, ABB and Monta.

Dedicated charging facilities for the bus fleets is another important segment. Vattenfall has delivered 32 fast-chargers to the Danish bus company Tide for the latter’s operations in the city of Vejle. In the arrangement finalized, Vattenfall is responsible for both charging solution and the power supply or its procurement. The power supply is currently charged based on spot prices and the charging stations involve Direct Current (DC) fast-charging systems with smart controls. A similar niche sub-segment is of the heavy commercial vehicles as trucks. By end of 2023, the Hirthals Transport Center could have one of the first charging stations (three 400kW chargers) meant specifically for the electric trucks.

Within heavy commercial vehicles’ sub-segment, the policy push for electric buses acts as a propeller for demand. The Danish capital city of Copenhagen aims to completely electrify its bus transportation by 2025, being left with just five of the bus routes in this regard (as of February 2023). With such a decision, the bus operator is likely to be compensated for ending diesel-based bus operation ahead of contracts (ending between 2026-2029). Other major cities, notably Aarhus, Odense, Aalborg, Vejle and Frederiksberg, among others are in the similar transitory phase, allowing their existing diesel buses to complete the contracted period.

Rise in electric bus procurement from various local and municipal authorities led major OEMs to make inroads in the Danish market. A discernible development has been the market leadership of Chinese automakers. Yutong is one such company that leads the pack, followed by Golden Dragon and BYD among others. In the process, these market players displaced the position of established legacy OEMs including Mercedes, Scania and Solaris. While the same may not continue, the short-term horizon is clearly in favour of the Chinese manufacturers for the market share cornered in new orders.


By the end of 2020, the Danish Parliament had voted in favour of a government objective of putting at least 775,000 electric vehicles by 2030 in the country. The uptick in the electric vehicle sales since early 201 indicates a steady progress towards such a target. The growth in the segment will however be contingent on the factors including product range, competitive price points and the accessibility of the charging facilities.

The requirement for public charging facilities is a critical one. Estimates from Technical University of Denmark (DTU) indicate a requirement of 26,766 public charging points by 2026, and 67,000 by 2030 to support the policy objectives set for electric vehicles. DTU’s same estimates also carry the rider that even the latest estimates could need recalibration periodically for the dynamic nature of the electric vehicle market.

The European Commission’s hard stance on emissions of heavy vehicles could help align the incentives for zero-emissions and especially electric drivetrain in heavy-duty commercial vehicles including trucks and buses. The rapid shift in electric buses combined with the relatively higher fuel costs across Europe can further add momentum for transition. It is expected that the European Commission’s target for electric buses could be 2030. Of all things, this could make for a stiffer competition between Chinese and the European manufacturers.