Following Tesla Sales Crash, Denmark Reconsiders EV Incentives

APR 30 2018 BY MARK KANE 27

Denmark, a small European country, was once one of the biggest plug-in car markets, but things changed after incentives were decreased.

Renault ZOE

According to ACEA, in 2015 some 5,298 plugs-in were registered in the country, including 2,738 Tesla Model S.

In 2016, the market decreased by over 60% to 1,920 and in 2017 to just 1,342 (another 30% year-over-year drop), including 386 Renault ZOE (the best selling model for the year).

Read Also – In March, Plug-In Electric Car Sales In Europe Exceeded 40,000

Because diesel isn’t right solution after the Dieselgate, Denmark is in position in which sales of non-polluting vehicles are decreasing.

Prime Minister Lars Lokke Rasmussen hinted that Denmark will now reconsider electric car subsidies/tax cuts (vehicle registration tax often doubles the cost of new car), that could be introduced as early as after this summer.

We have tax incentives for electric cars, and you could discuss if they should be bigger. I will not exclude that,” Rasmussen said in an interview in Copenhagen. Any new incentives would be announced along with a government plan to boost clean-energy consumption after the summer, he said.

Danish sales of electric vehicles have fallen dramatically — from nearly 5,000 in 2015 to around 700 in 2017 — since Rasmussen’s center-right government phased out subsidies such as those offered in Norway and Germany.”

Source: Bloomberg

Categories: General, Tesla

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27 Comments on "Following Tesla Sales Crash, Denmark Reconsiders EV Incentives"

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Please don’t use “Tesla” and “crash” in the same headline 🙂

“Because diesel isn’t right solution after the Dieselgate, Denmark is in position in which sales of non-polluting vehicles are decreasing.” Was this translated by Google?

I suspect a big issue is there is such a strong mental connection between the two, an EV and an incentive. The EV should stand on it’s own but it has become entangled with free money. It’s see it as a shackle that will be hard to throw off.

They have created the problem of keeping people engaged as the free money disappears.

The big question is not if there should be an incentive offered for evs but if there should be a penalty imposed on gassers for pollution. I think the answer is obvious.

Ask VW if there is a penalty imposed for exceeding pollution regulations.

You’ll never see a consumer based penalty, outside of tampering with the car. That’s taken care of through regulations and restrictions placed on the manufacturer.

Carbon tax on fuel is a consumer based penalty.

I guess the gas guzzler tax is a penalty. But I can’t see a day where that turns into a gas car tax, which I think was what the penalty part was about. The opposite of the EV credit would be the gas car tax, applied to all gas cars top to bottom. I don’t think it’s necessary to be so punitive.

More like an incentive…to use less.

Denemark policy was that it doesn’t need any more cars on the roads. The car tax for EV has to be only so low as to persuade people who decided to buy a car to buy an EV not to incentives people who consider buying a car as too expensive to buy an EV rather than not buy a car at all.
To balance that is very difficult.
The market addiction to incentives on EVs is a problem. The advantage of financial incentives is that they can be phased out gradually, let’s say 5%-10% a year, not to descourage buyers from EVs, but to let the market know it has to gradually get on its own feet.

Does this imply that the people of Denmark are more about government hand-outs than the environment? Who didn’t see this headline coming?

I find your comment to be more than a bit counter-factual, not to mention unfair. It’s always been quite noticeable that government incentives have a surprisingly large effect on EV sales. Note, for example, the sales of EVs in Georgia*, which plunged precipitously when the State EV rebate was eliminated.

Last I looked, the good citizens of Georgia were not especially noted for outstanding dedication to socialism. 😉

*that’s the State in the U.S., not the country bordering Russia

His comment made sense. Yours is self-contradictory and it doesn’t.

Denmark has insane car taxes, to prevent people from buying cars, and at least larger gas guzzlers. Most cars are tiny. At least a class smaller then a Golf. Take the US price, and at least double it, and you have the Danish price. Some cars cost 3+ times more.
You will not find too many V6 and V8 engines. Å small 1 liter engine is way more common. Add among the worlds most expensive fuel, to prevent everything but important driving, and you have the Danish system.
They are very focused on the environment.
What’s better then buying an EV? To buy no car at all.
When it comes to biking, the Danes are only behind the Dutch in the world. To see all those people using the bike to work is impressive.

Yeah taking away personal freedoms for the common good. They might just buy a car in Germany and register the vehicle there with a fake address and drive off since the EU is becoming its own United Europe

The cars Tesla displaces are built to rapidly burn gas in V8 engines as quickly as possible. EPA numbers are a joke in this category.
You want to displace as many of these polluters as fast as you can.

The Civic is at 32,584 so far and the S Class is at 1,627. I really don’t care if those 1,627 cars have a V12 in it, still better to focus on displacing the 32,584 number even if it’s got a wee little gas engine.

You’ll hardly find a V8 in Denmark.. or a V6.. but tiny 1 liter, 3 sylinder engines on the other hand is normal..

One step at a time. Nobody is asking a buyer of a 1L car to buy a Tesla, but there are some Danes who want expensive sedans/SUVs, and it’s a good thing for them to purchase a Tesla instead. There are even more Danes buying cars in the same class as the Model 3, and soon the Model Y, VW ID, etc.

Expensive cars aren’t just for the rich, either. In 5 years, a car loses 60-70% of its value. For the next 15 years, it serves middle class and even poor families.

So nobody wants those crap cars without incentives ??

Nobody wants to pay more in tax for a zero emmision car than for an ICE car.

EV’s are cheap here in Denmark – it is peoples attitude to rangeannexty that scares them not to buy.
2014 Leaf owner

Everyone keeps getting this wrong. Sales didn’t crash after the incentives were withdrawn, Rather, sales soared just before. ( The subsequent low sales had more to do with lack of demand after saturating the market.

People don’t seem to understand the danish tax system. EVs were never subsidised but were exempt from the vehicle registration tax, which at the time had a marginal rate of 180% of the cars value. Since the tax is value based the EVs, even with in first year of the phase in, could well pay more in tax than a comparable ICE. Obviously that made the sales crash. People are not going to pay more in tax for a non-polluting car. Ever.

The government is totally disinterested in EVs. They care about the fiscal issues only and regard EVs as a nuisance.

Thats fiscal conservatives for you

It’s hilarious when politicians publicly embrace EV virtue, thinking few will ever use them. They are shocked, shocked to find average people went green when taxes were reduced and bought tons of EV cars. 🙂 Who knew that capitalism actually works? Can’t let the free market reign in Denmark, because that kills ICE car sales, and the fat checks politicians routinely get from pandering to auto giants. So Denmark punted EV incentives so fast, the voters’ heads spun. Denmark can stop pretending to have Norway’s EV virtue. Will Denmark ever again put their money where their green mouths are? (Note: Denmark’s politics were always ridiculously contradictory. See Shakespeare’s Hamlet).

In mid 2015 goverment talked about to many rich people was buying Tesla to cheap, without tax, and goverment was losing millions on income from car tax. There was talk in TV about adding full tax on the EV, and price would be 3 times more. Now the ones that had a house where the could get cheap loans ordered a Tesla, so in one month Dec 2015, Tesla was the most popular car in DK even beat the VW UP Some people thought that they could sell the Tesla in 2016 as new and collect some ekstra money, but in January 2016 goverment decided on 20% tax and not 180%, so quiet a lot of Tesla’s went on sale and if you look at even today there are about 90 Tesla for sale, in 2015 that number was less than 10. Electricity is also expensive in DK, 0,40 Dollars pr. KW, so driving a tesla is same price like driving a diesel car that goes 20 km/l and many diesel cars do Exactly the same happened with solar panels some years ago, goverment changed how to calculate the power production and it became non profitable to have solar… Read more »