Danish Car Sales Surge in July with 14% Growth; Electric Vehicles Lead the Charge

In July, there were 11,239 newly registered passenger cars, representing a growth of 14 percent compared to the same month last year, according to figures from De Danske Bilimportører (the Danish Car Importers)

The growth in July contributes to the trend that has characterized 2023, where car sales have been higher than in 2022. July also saw a significant increase in electric car sales by 82 percent, with electric vehicles being the fastest-growing segment in the Danish market. Plug-in hybrid cars and electric cars accounted for 42 percent of passenger car sales in July.

-“We are pleased that car sales continue to grow. Danes have a great appetite for new cars, especially electric cars. At the beginning of the year, there was significant uncertainty about car sales and people’s desire to buy a new car due to interest rate increases and general uncertainty, but it’s going much better than we feared,” says Mads Rørvig, CEO of De Danske Bilimportører.

The ongoing success of electric car sales requires political action. The year has seen significant growth in electric vehicles month after month, and electric cars now make up over 5 percent of the car fleet. However, the development in electric car sales is also helped by a tax exemption that makes electric cars competitive compared to diesel and petrol cars.

The tax exemption is scheduled to be phased out after 2025, which is expected to lead to a slowdown in electric car sales. As the fall approaches and a new political season begins, De Danske Bilimportører see it as a good opportunity to examine the upcoming tax developments.

-“It is absolutely essential that taxes on electric cars remain stable if the development of electric vehicles is to continue at the high pace we are seeing now. The phasing in of taxes will result in significant price increases for electric cars, making it difficult for many car buyers to opt for an electric car. The upcoming political season is a good opportunity to take a closer look at this issue,” says Mads Rørvig, CEO of De Danske Bilimportører.