Sweden’s passenger car market showed a modest recovery in March 2025, with 24,204 new cars registered, reflecting a 1% increase year-on-year. However, the market remains 23% below the five-year monthly average, underlining lingering challenges in consumer demand and broader economic conditions.
Amid this overall stagnation, the transition to electrified transport continues to gain ground. In March, rechargeable vehicles (battery electric and plug-in hybrid) accounted for nearly 61% of new passenger car registrations, with battery electric vehicles (BEVs) alone making up 35% of the market. Over the first quarter of 2025, BEVs and PHEVs combined reached a 58% share, indicating steady progress in the electrification of Sweden’s vehicle fleet.
“It is still companies that drive electrification,” noted Sofia Linder, Chief Economist at Mobility Sweden. Nearly two out of three new passenger cars, and seven out of ten BEVs, were registered to corporate fleets.
Plug-in Hybrids Show Strong Growth
Plug-in hybrid vehicles (PHEVs) captured 26% of the market in March, showing a 14% increase in volume over the same month in 2024. This growth contributes to the robust overall share of rechargeable vehicles, even as BEV growth stabilises compared to last year’s levels.
Declines in Light and Heavy Trucks
The light truck market continued its downward trajectory, marking the eleventh consecutive month of decline. In March, only 2,899 light trucks were registered — a 29.5% drop compared to March 2024. Despite electric light trucks making up 23% of new registrations in Q1, the total volume has dropped by one-third year-on-year.
Mobility Sweden highlights the need to extend government support measures to counter this decline and support the electrification of light commercial vehicles, a crucial segment for emission reduction.
Heavy truck registrations also declined slightly in March (–4%), with 430 units registered. However, electric heavy trucks increased their share to 5% in March and 7.5% for the quarter. Notably, new heavy gas trucks saw a surge, comprising 19% of registrations in March and 16% year-to-date.
Electrification of Buses Accelerates
The bus segment stood out with 134 new registrations in March, a 332% increase year-on-year. This brings total bus registrations for Q1 to almost three times higher than the same period in 2024. The rapid growth is attributed to improved delivery capacity and a high share of electric city buses, which now account for approximately 60% of all new buses.
Outlook
While Sweden’s overall automotive market faces macroeconomic headwinds, including a sluggish construction sector and cautious consumer sentiment, the positive momentum in electrification remains clear. Continued support for light commercial vehicle electrification and ongoing improvements in charging infrastructure will be key to ensuring Sweden meets its ambitious climate goals.
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Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.
