Sweden 2019. Car Market steady under the bonus/malus effects

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Swedish Auto Market
Volkswagen-T-Roc_R-2020

Swedish Auto Market in 2019 scored a positive performance thanks to an artificial sales boom in December. Indeed, the year ended with total sales at 355.585, up 0.6%. Volvo has confirmed its leadership, dominating for the entire decade, followed by Volkswagen and the fast-growing Kia.

Economic Environment

Swedish economic expanded at a slightly faster pace in the third quarter, boosted by both fixed investment and government consumption swinging from contraction to expansion. However, private consumption growth moderated, likely on the back of a recent increase in the unemployment rate and weak consumer confidence. On the external front, export growth outstripped import growth, boosting overall growth.

Turning to the fourth quarter, the economy seems to be maintaining steady momentum, as suggested by a stabilization of consumer confidence in the quarter, which was likely in part due to higher housing prices and continued low interest rates. However, output from the manufacturing sector likely declined in Q4, as suggested by both PMI and sector-specific business confidence data.

Market Trend

Swedish vehicles market has ended a growing phase in the 2017 when the market hit the all time record with  379.240 sales after a series of four consecutive growing years.

The introduction of new fiscal rules aiming to push up the AVF vehicles and reduce the CO2 emission have pulled up the vehicles average price reducing the demand and the market approached a new and declining pathway which is still in place. A bonus/malus system was introduced in July 2018.

Indeed in the 2018 the market lost 6.7% landing at 353.647 sales while in the 2019 the trend was positive. Indeed, the year ended with total sales at 355.585, up 0.6%, thanks to an outstanding performance in December when registrations more than doubled at 48.239 units.

The main reason behind this boom in sales in the change in the bonus/malus tax system calculation which from 1st January 2020 is based on WLTP scores.

Volvo, the local luxury brand owned by the Chinese Geely, has been market leader for the entire last decade, always between 18% and 20% of market share. Volkswagen, which in recent years has been stable in second position, has lost 1.3 points of share in 2019, ending the year at 13.8%.

Behind the two leaders, the emerging brand was Kia, third with 7.2% of share, with new all-time record, 2.6 points more than in 2010. Fast-growing is Seat as well, hitting in 2019 the new all-time share record at 2.6%. Tesla is fast-growing thanks to the Model3 and it ended the year with 1.7% of share.

Tables with sales figures

In the tables below we report sales for all brands, top 10 manufacturers and top 10 models.

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