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Global EV Transportation Review

Key Regional Markets


Globally, Sweden ranks among the top countries for electric vehicle penetration. Over half of the new vehicles registered in 2022 were battery-electric or plug-in hybrids. The country’s recent policy step to stop subsidizing electric vehicle purchases stems from the industry’s promising growth. At the same time, the emphasis is high on electrification to achieve the targeted goals of decarbonization. Some of the significant foreseen challenges lie in jumpstarting the rate of capacity addition in the charging network. Also important is the timely growth of the local manufacturing base to enable competitive and efficient supply.

GDP (Current Prices) USD (2021)

635.66 bn

GDP Growth Forecast (constant prices) (2021-2025)


EV Penetration

33% (battery electric) of the total new passenger vehicle registrations in 2022

EV Target

Not specific to Electric Vehicle. Overall policy goal is to have net- zero greenhouse gas emission by 2045

Planned Year of Phasing Out ICE Vehicles


GDP Source: IMF, World Economic Outlook

EV Penetration and Trend

Source: Mobility Sweden

The Swedish market leads globally for the penetration achieved in electric vehicles. By the end of 2022, over half of the new passenger vehicle registration was based on the electric drivetrain. In 2022, battery electric vehicles led ahead of the plug-in hybrids in new registrations. The trend may continue due to a rise in conventional fuel prices and the availability of better product variety in battery electric modes. Also relevant in the context is that the sales took place amidst the semiconductor shortages faced by automakers, which impacted supplies.

Source: Mobility Sweden

During 2018-2022, passenger electric vehicles registered a CAGR of 55%. The battery electric vehicles contributed the most, with a CAGR of 91% in the same period. The segment accounted for almost 60% of the total electric vehicles registered in 2022 (161,649 units), a sharp rise from same relative share of 30% in 2020. Comparing the annual growth in new registrations, the 19% year-on-year growth in 2022 was significantly lower than in previous years. The reasons could be the rising backlog of vehicles and the reigning inflationary pressure.

Electric Bus Registrations

Source: European Automobile Manufacturers Association (ACEA)

The commercial segment of the electric vehicle market is comparatively smaller in absolute sales terms. The growth, however, is sharp, picking up from the low base. With rapid procurement orders, the new electric bus registrations reported a CAGR of 64% during 2018-2022. Electrification is still insignificant (6.4%) in the total bus fleet of 14,239 units. The spike in new diesel bus registration caused a dip in the relative share of electric bus registration in 2022. Increasingly, with new diesel buses complying with stringent European emission norms, diesel powertrains remain in contention for the operators. The growth spike is sharper for electric trucks (over 3.5 tonnes). A steady stream of orders vastly expanded the total fleet – from just four units in 2018 to 231 by the end of 2022.

Charging Infrastructure

Note: Data for 2023 is as of February 2023
Source: European Alternative Fuels Observatory

Sweden’s existing public charging infrastructure, with 25,949 charging points (AC and DC), is in a catch-up mode against over 400,000 electric vehicles (passenger vehicles) in traffic. The expansion is underway at a fast clip. In 2022, the number of AC charging points grew 26% year-on-year, while those based on DC grew by 74%. Almost 90% of the charging network is based on AC power rating. In terms of network coverage, the progress has been good. Stockholm, for instance, ranks among the top 10 European cities in charging density (number of bays per sq. km). As of June 2022, the Swedish charging network size stood fourth among the European countries in a European Automobile Manufacturers Association ranking.

The trend shows a discernible shift favoring higher power ratings, signifying faster charging. In the dominant AC charging network, the medium and fast-charging sub-segments led the growth during 2022, at 35% and 63%, respectively. In the DC network that already operates at a higher power rating, the weightage in capacity addition is skewed towards the fast and ultra-fast sub- segments. Besides the low-base effect, the untapped yet rising demand for dedicated charging in commercial transportation (electric buses and heavy-duty trucks and freight) is a key factor propelling faster charging stations.

Note: Data for 2023 is as of February 2023
Source: European Alternative Fuels Observatory

Sweden’s charging infrastructure also includes an induction-based wireless charging system. Though at a nascent and largely experimental stage, successful trials have helped progress the operationalization of this technology. In 2018, the world’s first induction charging system was launched in Sweden, with a 2km stretch of road equipped with electric rails to link Stockholm airport with a logistics site. In April 2022, the technology and equipment company Electreon announced a one-year extension of the same wireless charging project. Subject to fulfilling specific requirements, the technology is regarded as key for the long haulage freight trucking routes and electric bus transit systems.

Policy Regulation

Sweden’s climate policy framework sets an ambitious goal of having net-zero greenhouse gas emission by 2045. In this regard, the mandate for domestic transport sector is to reduce emissions by at least 70% by 2030 compared to the level in 2010. The year 2030 is also the year by when the sale of new conventional fuel-based vehicles is banned. The policy support so far for electric vehicles, along with other alternate fuel transportation, has thus been to support the market-led growth in electrification.

The trend in Sweden’s electric vehicle penetration is evidence of a maturing market. This is the reason why the government, as of November 2022, announced a complete cessation of the subsidy support. The subsidy fulfilment during 2023 will be only for the orders already placed. In effect, this also means that vehicles with emissions higher than cut-off level (30 gm CO2 per km) must pay a higher vehicle tax. It means that petrol and diesel-based vehicles continue to be subject to a heavy taxation, as before.

Some subsidy support is available for setting up charging stations. A grant covering 50% cost of a home charger installation, up to €1,350, is available for the residential or multi-home applications. Further, the government has schemes with budgeted outlays to fund the businesses, municipalities, and other entities for specific ideas/projects (including charging infrastructure) that can have a climate benefit. Typically, the funding covers up to 70% of the investment commitment.

Market Opportunity

The electrification of public transport, through electric buses, is an important growth driver. Many of the cities and local authorities are joining in, through placement of orders to replace existing fleet. For leading global manufacturers, bus procurement constitutes an important and increasingly competitive segment. Among recent major orders, Ebusco signed a fixed contract with the operator company Connect Bus (with operations in both Sweden and Norway) for 46 electric buses by end of 2023. BYD, as another major player, secured an order for 52 electric buses from the operator Transdev. Sweden, along with other Nordic countries, constitute an extremely attractive and contested market space for electric buses due to the huge untapped potential of fleet replacement.

With a pronounced focus on charging network expansion, the investment activity is high in this segment. As of July 2022, the parking operator Stockholm Parkering launched a European Union-wide tender for procurement of 10,000 chargers over a period of four years. Notably, the tender is only for purchase and not installation. Also, the planned procurement is aimed to include the city’s other parking operators. Separately, Stockholm Parkering engaged CTEK for installing 1,000 charging points in one of it operational locations. The company’s long-term aim is to have 100,000 new chargers in place by 2030.

Leading Swedish enterprises are partnering with charging station developers and operators to participate in the space. The Ingka Group, under its IKEA brand, partnered with charging operator Recharge to expand the charging network through its business locations and operations. As part of the plan, IKEA Sweden will have 700 new chargers installed by 2024. Another example is the Swedish commercial property company Regio partnering with charging system developer and operator IONICITY to install and run 108 high capacity (up to 350kW) charging points across 12 sites. The planned capacity, targeted for commissioning by the end of 2023, is aimed at long-distance travelers.

Niche demand sub-segments for charging are gaining focus for investors. One such sub-segment is commercial transportation, particularly the heavy-duty electric trucks deployed in long-distance freight. Though electric trucks are yet to gain any significant share of the entire trucking industry, the growth in stock is generating a sufficiently high demand for dedicated and high-powered charging stations. Equipment companies such as Kempower are among the leading contenders. By the end of 2023, Kempower will supply fast-charging systems for an electric truck charging network. Supported partly by Swedish Energy Agency’s grant, the upcoming network will be in Gothenburg, Söderhamn, Sundsvall, and Nordmaling. In this context, it is noteworthy that a recent report by the Swedish non-profit organization PowerCircle projected the need for 1,200 charging stations meant for electric trucks by 2030.

There is a heightened interest in wireless charging after encouraging results from the trial run in 2018. In March 2022, the automaker Volvo Cars announced a wireless charging project in Gothenburg. It will run for three years and deploy a small fleet of Volvo XC40 vehicles to be used as taxis to ply in the city and recharge wirelessly at the earmarked wireless charging points. The aim is to test the technology’s feasibility and fitment in a shared mobility environment. Other project partners include Volvo’s retailing entities Volvo Bil and Volvo Car Sörred, energy company Vattenfall and its charging network InCharge, city energy company Göteborg Energi and Business Region Gothenburg, a municipal economic development agency owned by the City of Gothenburg.

The company Electreon, involved earlier in the pioneering Swedish wireless charging project, is also involved in the extension of the same project. This €2 million project, funded by the Swedish Transport Administration, will test for upgraded charging capacity features besides software control systems. As the company is implementing similar projects in France, the trial project could benefit from enhanced technology partnerships and know-how before a wider-scale rollout. The company is also expected to lead the race as market players prepare for Swedish authorities’ tender for constructing wireless charging-equipped roads in the priority freight corridors.

The opportunity spectrum also includes the battery manufacturing ecosystem. Northvolt is in process of establishing a Gigafactory (called Northvolt Ett) in the Northern Sweden, with a maximum capacity of 100GWh in cathode material. The facility, aimed for commissioning by 2024, will enable assembly at multiple Northvolt facilities. Importantly, Northvolt has partnered with a battery recycling entity in Norway for eventual integration with its planned battery manufacturing process. Other enterprises have similar projects in pipeline. Volvo Group is in the process of finalizing a battery manufacturing plant in Sweden’s Skaraborg region. Planning works are underway for requisite regulatory approvals to establish the production site.


The net-zero objective of 2045 would entail a much higher dent in electrification. Even a 25% share of the electrification of the passenger vehicle fleet, at the current level, means over a million electric vehicles. This is three times the current electric passenger vehicle fleet. While the new vehicle registration trend is encouraging, it will take longer to displace the fleet-size emission stock. In this context, the abrupt end of subsidies may not sustain the demand pull at the same rate it has so far. While the supply side is prepared due to the rising capacity in production lines, the demand may need more momentum.

The commercial electric vehicle segment could gain a stronger footing in the Swedish market, taking both electric buses and trucks into account. The electric bus demand is propelled by the fleet replacement demand from operators as well as municipal and local authorities. Electric trucks are meeting the rising demand for emission-free transportation in the logistics and construction sectors. One key illustration of the emerging need is Volvo’s commencement of series production of heavy-duty electric trucks in Sweden.

A potential demand-supply gap is anticipated in the charging infrastructure base, where availability lags requirement by a wide margin. The European Automobile Manufacturers Association’s report of 2022, projecting the leading European countries’ gap in charging network capacity addition, held that Sweden was at just 11% of its required expansion of charging points by 2030. It may require a concerted policy push to improve the scenario, especially with the progress achieved in the transition toward electric vehicles.