Part of EAFO’s Series on EV Market Trends Across Europe
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The Finnish automotive market faced significant challenges in 2024, marked by a notable decline in overall car sales but with continued momentum in the transition to low-emission vehicles. Here's an overview of the year's performance and key trends.
Decline in New Car Registrations
In 2024, a total of 74,065 new passenger cars were registered in Finland, representing a 15.4% decrease compared to 2023. While December showed a glimmer of hope with a 8.3% year-on-year increase in new registrations (6,283 units), the annual total fell short of the average sales from the past decade.
- Petrol Cars: Registrations dropped to 33,365 units, a decline of 2.9% from 2023.
- Diesel Cars: Continued their decline, with only 3,809 units, a 24.7% decrease year-on-year.
- Battery Electric Vehicles (BEVs): Despite the challenging market, 21,868 BEVs were registered, making up 29.5% of total new registrations, though down from 29,536 units in 2023.
- Plug-in Hybrids (PHEVs): Registrations fell to 14,863 units, representing a 17.8% year-on-year decrease.
- CNG Vehicles: Only 114 units were registered, a significant drop compared to 453 units in 2023.
These figures reflect a challenging economic environment, with low consumer confidence and a slow response to falling interest rates. However, the growing demand for low-emission vehicles continues to highlight Finland's commitment to electrification.
Shift Towards Low-Emission Vehicles
Despite the overall decline, the adoption of low-emission vehicles remained a key highlight:
- Rechargeable Vehicles: Nearly 49.6% of new passenger car registrations in 2024 were rechargeable (BEVs or PHEVs), underscoring their growing share in Finland's car fleet.
- Company Cars: Companies played a pivotal role in driving this shift, with 55.9% of new company passenger cars being rechargeable. Fully electric vehicles accounted for 32%, while PHEVs contributed 23.9%.
- Private Purchases: The 40-49 age group led the way in adopting rechargeable vehicles, with 52.2% of their purchases being low-emission cars.
The transition to electrification was geographically concentrated in Uusimaa, where 33.1% of new registrations were BEVs and 21.8% were PHEVs. North Ostrobothnia also showed strong adoption rates, with 31.1% BEVs and 18.6% PHEVs among new registrations.
Commercial Vehicles and Buses
- Light Commercial Vehicles (LCVs): Registrations declined by 4.8%, totaling 2,340 units, with electric LCVs facing a 5.1% drop.
- Trucks: A total of 3,444 trucks were registered in 2024, with 7.2% being electric or gas-powered, up from 3.4% in 2023. The increase was attributed to the support program for low-emission trucks, which ended in 2024.
- Buses: The bus market saw remarkable growth, with 561 new registrations, a 125.3% increase, driven by public procurement projects.
The Road Ahead
Despite 2024's challenges, there are reasons for optimism:
- Growing Orders: Customer orders increased by 14% in the latter half of the year, suggesting potential growth of 10% in 2025 first registrations, according to the Finnish Automotive Federation.
- Tax Incentives: The extension of tax benefits for low-emission company cars until 2029 is expected to stimulate further demand for BEVs and PHEVs.
However, the overall decline in vehicle registrations highlights the need for stronger consumer confidence and supportive policies. Continued focus on expanding charging infrastructure, promoting low-emission trucks, and incentivizing private and corporate adoption will be crucial for Finland's transition to sustainable mobility.
The propulsion revolution continues, with over 10% of Finland's car stock now being rechargeable, marking significant progress towards a greener future.
Source:
Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.
