Swedish car market drops 18% — EVs hit 42% record share

<p>January 2026 delivered dramatic figures for the Swedish car market. A total of <strong>16,041 new passenger cars</strong> were registered — a decline of <strong>18 percent</strong> compared to the same month last year, according to Mobility Sweden. But amid the downturn, there's a clear bright spot: EVs accounted for a full <strong>42 percent</strong> of new registrations, up from 29 percent in January 2025.</p><h2>EVs defy the trend</h2><p>While the overall car market dropped sharply, EVs continued to grow. Nearly every other new car registered in January was a battery-electric vehicle — a historic high. In total, 64 percent of all new passenger cars were chargeable (BEVs plus plug-in hybrids).</p><p>What's driving EV growth despite the weak market?</p><ul><li><strong>More affordable models:</strong> The supply of EVs priced under SEK 400,000 has grown significantly with models like Kia EV2, BYD Atto 3, and Ford Puma Gen-E</li><li><strong>Lease renewal effect:</strong> Many leasing contracts signed in 2023 — before the climate bonus was abolished — are expiring now. These customers often renew with a new EV</li><li><strong>Falling prices:</strong> Tesla, Volvo, and Hyundai have all cut prices or launched aggressive campaigns</li></ul><h2>Private leasing dominates the EV market</h2><p>One of the most striking figures: <strong>seven out of ten</strong> private EV buyers in January chose private leasing. For all vehicle types combined, the figure was six out of ten. This confirms that private leasing has become the dominant way for Swedish individuals to finance a new car — and EV buyers are the most likely to lease.</p><p>It makes sense: private leasing eliminates the risk of uncertain residual values on EVs, provides a fixed monthly cost, and makes it easy to switch to a newer model when the contract expires.</p><h2>Why did the market drop?</h2><p>The sharp 18 percent decline has several explanations:</p><ul><li><strong>The ethanol effect:</strong> In January 2025, ethanol car sales surged ahead of changed tax rules, reaching a record 8.5 percent share. This year it's down to 0.5 percent — creating a skewed comparison</li><li><strong>Tariffs and geopolitics:</strong> Uncertainty around international trade tariffs is causing both private and corporate buyers to hold off, according to Mobility Sweden's chief economist Sofia Linder</li><li><strong>Weak economy:</strong> A sluggish construction market and general economic uncertainty are dampening consumption</li></ul><p>Heavy trucks also crashed — down 23 percent — and bus registrations nearly halved.</p><h2>Sweden stands out in Europe</h2><p>In a European context, Sweden stands out positively. According to ACEA, total new registrations across the EU fell 3.9 percent in January, while EVs reached 19.3 percent market share. Sweden's 42 percent is more than double the EU average — second only to Norway (where EVs now account for over 80 percent of new car sales).</p><p>Sweden's charging infrastructure also continues to expand. During January, <strong>786 new public charging points</strong> were added, bringing the national total to over <strong>66,000 public charging points</strong>.</p><h2>What does this mean for leasing prices?</h2><p>The weak total market combined with strong EV demand creates an interesting dynamic for private leasing:</p><ul><li><strong>More aggressive deals:</strong> Manufacturers needing to maintain volumes will offer more attractive leasing prices</li><li><strong>Wider selection:</strong> More EVs across more price brackets mean you'll find something to fit your budget</li><li><strong>Better negotiating position:</strong> In a weak market, you as a customer have more leverage</li></ul><p>Right now, you can find EVs from under SEK 3,000/month in private leasing on privatleasa.se — and with the current market conditions, prices may drop further during spring 2026.</p><h2>Outlook for the rest of 2026</h2><p>Mobility Sweden expects the EV trend to continue upward, but the overall market to remain uncertain. New models like the Volvo EX60, BMW iX3 Neue Klasse, and Kia EV4 are expected to drive EV sales further. If the economy stabilizes and interest rates continue falling, the second half of 2026 could bring a clear turnaround.</p><p>Compare private leasing offers on privatleasa.se and take advantage of the strong competitive environment.</p>