In 2018 Denmark Returned To Strong Growth Of Plug-In Car Sales

Kia Niro PHEV

JAN 19 2019 BY MARK KANE 34

Organic growth led Denmark to levels from 2015, driven by incentives

Denmark finally shows signs of increased demand for plug-in cars. In 2018 some 4,583 were sold, which is 261% more than year ago, and the best results since 2015.

The market share also improved to 2.0%, close to a record of 2.3% in 2015. If the new trend will continue, the year 2019 should be best.

Most of the sales (68%) fall on plug-in hybrids, which also experienced rapid growth of 449% year-over-year, while all-electric car sales increased by 111%.

The best selling model is the Kia Niro PHEV with 1,113 sales (24% of all), followed by the Nissan LEAF with 637 sales.

Plug-in electric car sales in Denmark – December 2018

Source: EV Sales Blog

Categories: Sales

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34 Comments on "In 2018 Denmark Returned To Strong Growth Of Plug-In Car Sales"

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Another Euro point of view

Interesting, note that out of this list, only one car has a price above EUR 50K, the Volvo. Out of that same site (EV sales blog), the German plugging sale scoreboard for 2018 which was published yesterday reports no pluggin priced above EUR 50k in the top 10. We are somewhat of a thrifty bunch.

This is as expected. Higher prices cars sell less then their cheaper versions. Tesla S shoukd sell at lower volumes then 50k car, which in turn should sell at lower volumes then 35k car which should… ok You get the picture. It’s USA totally borked market that’s skewed. Once good competition arrives we will see normal distribution of sales across price range. By competition I mean cars at price points not “legacy” or other brands.

Rasmus Birkegaard Christensen

Model 3 February delivery will show over 300 deliverys, Hyundai kona will sell well because it is priced low. The etron has 400 reservations. 2019 Wil be a great year.

@ Rasmus Birkegaard Christensen

What can you tell us about the incentives for Plug-In EV’s in Denmark?

Does the government of Denmark really want Plug-In EV’s to go mainstream in Denmark?

Do people in Denmark receive a certain amount of money (subsidy/rebate) from the Danish government when they decide to buy a new Plug-In EV?

I can help you. I will try to make this short 🙂

In general all vehicles in Denmark pay 25% in taxes (incl. EVs/Plug-ins)

On top of this all vehicles also pay the following in registrations:
85% of the first 13.000 USD
150% from 13.000 USD to the price of the vehicle including the 25% tax

So basicly all vehicles are really expensive here.

For EV’s we have the following incentives in 2019:
For all BEV/PHEVs below 61.000 USD –> no registration is payed
Any cost above 61.000 is with 40% of 150% –> 60% registration tax

For EV’s we have the following incentives in 2020:
For all BEV/PHEVs below 61.000 USD –> no registration is payed
Any cost above 61.000 is with 65% of 150% –> 98% registration tax

(Model 3 AWD LR is starting from 70.500 USD in Denmark)

This iis one of the reasons why we are waiting for a cheaper Model 3 to avoid paying the high registration costs.

@ Arpe

Thanks for the explanation.

You mention amounts in USD, but shouldn’t that be amounts in Euro?

Answer: No, because Denmark is not one of the countries that have the Euro as their currency.

Yes, the Danish krone follows EUR, but most people on this site uses USD so I went with those 🙂

As “the dane” states below there is also an incentive based on milage (“fuel efficient”) typically giving BEV/PHEV a 20.000 EUR reduction in registration.

I believe the Danes choose PHEVs because they are scared of taking the full EV step and because they are able to sell at a similar price to ICE.
BEVs typically don’t have an identically ICE to compare against. But there is hope that 2019 will change this with, Model 3, Kona, Niro and Leaf.

I still think eTron and I-pace are too expensive too sell in big numbers here but hopefully they can surprise!

@ Arpe

“As “the dane” states below there is also an incentive based on milage (“fuel efficient”) typically giving BEV/PHEV a 20.000 EUR reduction in registration.”

The reduction in registration for BEV/PHEV is based on fuel efficiency. How do they calculate the amount of the reduction in registration? Or is the amount of reduction perhaps a fixed amount?

Well, they have found a conversion factor for gasoline to electricity and a WLTP rating.

I don’t remember the units for gasoline but an example of the calculation is here:
9125/(140 Wh/km) = 65,18 L/km

This number is used to calculate the incentive, each L/km above 16 km/L of WLTP is a 4.000 DKK (530 EUR0) reduction in registration.

EVs typically get 50 km/L (Tesla Model S) to 65 L/km (Zoe / Model 3 etc.). I haven’t been able to find WLTP numbers used for registration so far. But based on the prices of Model 3 it seems that WLTP is better than NEDC for this type of registration incentive.

(The Danish government made a conversion between NEDC and WLTP which really helped EVs)

@ Arpe

“This number is used to calculate the incentive, each L/km above 16 km/L of WLTP is a 4.000 DKK (530 EUR0) reduction in registration.”

I think that you mean: “each km/L above 16 km/L”, right?

Yup.

That’s insane.

PHEV’s are now taxed the same way ICE cars are – based on their mpg. So PHEV are a good deal compared to similar ICE cars. For 2019 EV’s pay only 20% of the total sales tax that ICE cars does, so they are heavily subsidized. On top of that in 2019 EV’s receive a DKK 40K sales tax rebate increasing to DKK 77k in 2020 (~$6k and ~$12k respectively).
The same does not hold true for PHEV’s, but the mpg is calculated using the consumes gasoline and the energy consumed as electricity measured in gasoline, and as a result they get a very high mpg value. And the sales tax (actually called registration tax) is discounted based on the cars mpg value.
That is why we have seen such an increase in sales of PHEV’s in 2018 in Denmark.
An example could be the Kia Niro PHEV and HEV have a starting price that is almost identical. The PHEV is only some ~$500 more expensive. So buying a HEV would make no sense.

@ the dane

“For 2019 EV’s pay only 20% of the total sales tax that ICE cars does, so they are heavily subsidized. On top of that in 2019 EV’s receive a DKK 40K sales tax rebate increasing to DKK 77k in 2020 (~$6k and ~$12k respectively).”

You mean for BEV’s, right?

Well haven’t been able to find the submitted low yet. But I am pretty sure it is for both BEVs and PHEV… BUT only subsidies on the registration tax.

No matter how you calculate the danish vehicles price you cannot avoid the vehicles base cost+25% tax.

So that is the biggest difference between the danish model and most other subsidies where you get the cost off the vehicle.

This also means that the cheapest versions of BEVs in Denmark basicly get ZERO incentives: Zoe, Leaf (40), Kona, Niro etc… they all cost the same with or without subsidies.

Our government just don’t know this fact, but it is still better than nothing because Model 3 is a lot cheaper! 🙂

@ Arpe

“base cost+25% tax”

The 25% is VAT (Value Added Tax)?

Yes, we have a 25% VAT on cars (and most everything else)

Yes, true – got caught up trying to get it all written in short.

Thanks for doing the explanation for me. Was too slow 😉
I can’t believe somebody downvoted you for explaining the facts. What an idiot.

Yes in principle the government wants electric cars, but they are not doing much to make it happen.

The incentives are better than nothing but as stated elsewhere the least expensive EVs doesn’t benefit much so they are more expensive then equivalent ICEs. The expensive EVs are taxed with 60% (+VAT), this is less than equivalent ICEs (150%+VAT), but still a lot so few are buying in that price range at all (privately).

I do see a sweet spot in the model 3 price range, I think it will do fairly well, but unfortunately the environment and EVs is not really on the political agenda in DK these years so people don’t seem to care too much.
For many Tesla is an exciting car, but a bit too exotic, it will help when they can get a VW, Audi or Toyota in the same price range as model 3.

@ Peter Thorsen

“Yes in principle the government wants electric cars, but they are not doing much to make it happen.”

What should the government in Denmark do to increase the demand for BEV’s in Denmark?

– there should be ZERO sales tax (VAT) for BEV’s (or it should be refunded afterwards).

– There should be ZERO registration tax for BEV’s (or it should be refunded afterwards).

Simple and effective.

Yes of course economic incentives like that would help a lot (and be expensive for the treasury, we don’t have oil money like in Norway).

But I think just putting it on the agenda in media etc would help, but based on their actions the last few years we know that the current liberal government cares more about their agricultural and industrial voter base than the environment, so it would seem hypocritical even if they did. It would need to come from somewhere else I think.

I guess they are taking the approach that DK will not be a front runner in this area and we will catch up when the technology has matured and is less expensive.

@ Peter Thorsen

“I guess they are taking the approach that DK will not be a front runner in this area and we will catch up when the technology has matured and is less expensive.”

Denmark is a front runner when it comes to wind energy.

Perhaps it could be made possible to have EV charging stations all over Denmark where the charging rates are extremely low?

That would encourage people to switch from ICE vehicles to EV’s.

Wind energy in Denmark isn’t cheap. Being a pioneer means you develop the know-how but you don’t necessarily benefit from low prices.

@ Prsnep

What if Denmark would scale it up even further?

And store the energy in large scale stationary battery packs.

The next step would be to charge EV’s at extremely low prices.

That will result in extremely low prices per driven km in an EV model (compared to the much higher prices per driven km in an ICE vehicle).

Within two years there will be EV models for less than €20,000.- in Europe.

We are out of wind in Denmark. Apple, Facebook and Google are placing datacenters in Denmark basically setting us years back when it comes to the percentage of eletricity produced that comes from wind.

The idea of batteries is very nice, but not event slightly realistic. It is simply way too expensive to store electricity from wind (or other source) in batteries. But research is being done all over the world to come up with solutions that can store electricity cheap. And Danish universities are at the front of that.

Also take into account that although we pay almost $0.4 per kWh, only a fraction of that is the actual electricity – typically only around $0,05. The rest is VAT, transmission, and other federal taxes. So making dirt cheap power will not give BEV owners dirt cheap miles – unless you have your own solar array that is 🙂

Electricity runs at almost $0.4 per kWh, so not only are the BEVs expensive to buy, they are also quite expensive to operate.
Since cars are so expensive in Denmark, most people buy practical cars, and cannot afford the luxury of a second or third car just for the fun of it. So we don’t see many corvertibles, sportscars and therefore not many model 3’s either. It is just my guess, but let’s see what happens 🙂

What’s the EV in the main picture of the story? I don’t recognize it. Kind of looks like a Kona EV but it’s got the wrong grille.

It’s a Kia Niro PHEV

Oh really? Ok thanks! I was expecting the similar distinct grill from the Kia Niro BEV if it was the Niro, didn’t think to consider the PHEV variant.

Kia sells 3 variants of Niro as: Hybrid, PHEV and EV. Each of them has a different upper grill. The grill of the hybrid and PHEV are open with a lot of small cube decoration (dirt collector that is difficult to keep clean). EV is closed with slight dented pattern (easy to clean).

A big thank you to ‘the dane’, Arpe, Peter Thorsen for your explanations. I am a Frenchie leaving in Dk for many years and looking at switching to an EV, but I am really lost with all the recent policy changes, subsidies etc.

Excellent News they will love their Kias and Nissan Zero Emission vehicles. If they use the EVs in the 20-80% charge range the batteries might last a lifetime. Save those 100% charges for trips to Granny’s house over the hill and through the woods.