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The Swedish passenger car market has seen demand retreat further
during April. According to data published by trade association BIL
Sweden, registrations declined by 11.6% y/y to 30,253 units in
April. Overall, the Swedish passenger car market has now slipped by
14.4% y/y to 104,133 units in the year to date (YTD). Meanwhile,
registrations of light commercial vehicles (LCVs) with a gross
vehicle weight (GVW) of less than 3.5 tonnes declined again, by
15.4% y/y to 4,061 units in April, leading to a decline in the YTD
of 20.6% y/y to 14,115 units. However, sales of heavy commercial
vehicles (HCVs) with a GVW of more than 16 tonnes improved by 11.6%
y/y to 644 units in April, helping it further into positive growth
territory in the YTD with a gain of 8.1% y/y to 2,158 units.
Significance: After several years of gains, the
Swedish light-vehicle market shifted in the middle of last year
following the end of a push of non-WLTP compliant vehicles and the
introduction of a new CO2-based bonus-malus system. BIL Sweden's
CEO, Mattias Bergman, has said previously that around 64% of
vehicles sold last year were in the first half before its
introduction. However, the introduction of the bonus-malus scheme
is having a positive impact on the market, as it boosts the market
for plug-in vehicles and notably fully electric vehicles (EVs). The
market share of such vehicles reached 4.5% during last month,
versus 1.1% during April 2018. EVs saw a particularly large
increase due to new models coinciding with this support. This has
led the trade association to lift its forecast for such vehicles to
a share of 24% of the market during 2020 and 30% during 2021,
compared with the previous forecast of 19% and 25% respectively. It
also expected the share to reach around 13% this year. As for the
wider market, IHS Markit anticipates that passenger car
registrations will fall approximately 5% y/y to 336,000 units in
2019, with further declines to come as the market corrects after a
period of extended highs. We also see the LCV category falling back
over the next few years, beginning in 2019 with a fall of 12.6% to
49,800 units.
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The above article is from AutoIntelligence Daily by IHS Markit. Every working day, AutoIntelligence Daily provides about 30 articles focused on automotive news, events and trends. Get a free trial.