Yes, and the statistics are hard to ignore. In a notable shift, Sweden appears to be stepping away from electric vehicles (EVs) and revisiting petrol and diesel options. Here’s a deeper look at the trends and underlying causes.
Striking Numbers: A Clear Reversal in EV Adoption
- A 2024 survey commissioned by EY reveals that 37% of Swedish EV owners who replaced their cars opted for a pure petrol or diesel model. In comparison, only 16% transitioned to plug-in hybrids.
- The share of battery-electric vehicles (BEVs) in new Swedish car sales peaked at 38.6% in 2023. However, this has dropped to approximately 35% in 2024, whereas the EU-wide share continues to rise.
This “return to liquid fuels” is not just a media narrative—it is substantiated by real data from both consumer surveys and car registration statistics.
The Nordic Picture: Sweden as an Outlier
Are other Nordic countries seeing the same reversal in EV adoption? Not quite.
| Country | 2024 BEV Share in New Sales | Trend vs 2023 |
| Norway | ≈ 88% | Still rising |
| Iceland | ≈ 50% | Stable/slight ↑ |
| Finland | ≈ 34% | Small ↓ |
| Denmark | ≈ 40% | Stable |
| Sweden | 35% | Clear ↓ |
Sweden stands out as the only country in the Nordic region where electrification is currently moving backward.
Why the Swedish U-Turn?
- Policy Rollback
- In the 2022-2023 period, Sweden’s right-wing government reversed several pro-EV policies. This included scrapping the “climate bonus” for EV purchases, significantly reducing biofuel blending mandates (from 30.5% to 6% in diesel and 7.8% to 6% in petrol), and cutting fuel taxes. These changes effectively made fossil fuels cheaper relative to electricity, undermining the financial incentive to go electric.
- High Electricity Prices & Grid Anxiety
- Nordic electricity prices in 2024 averaged 50-80 €/MWh—double the 2020 levels. Consumers face winter peaks exceeding 1 €/kWh, along with rising grid fees. These higher energy costs have eroded the running-cost advantage of EVs, diminishing their appeal.
- Charging Friction in Rural Areas
- While Sweden boasts a dense fast-charging network along major highways, the challenges are evident when it comes to rural areas. Long-distance winter driving can lead to significant range loss in sub-zero temperatures, and high demand for fast chargers (150 kW) can lead to long queues. This “range anxiety” remains a barrier to adoption, especially outside urban areas.
- Diesel’s Continued Dominance in Company Fleets & SUVs
- Diesel-powered vehicles still dominate Swedish company fleets, especially among large SUVs and 4x4s, which are necessary for navigating winter roads. Tax policies now favor these large, diesel-powered vehicles, as the bonus malus scheme has been softened. Many Swedish leases are also written for cars like the Volvo V90, further bolstering diesel demand.
- Market Psychology & Concerns About Chinese Imports
- Media coverage around the potential dumping of Chinese EVs, the possibility of EU anti-dumping tariffs, and the financial struggles of Northvolt (with delays in the Borlänge and Skellefteå battery plant expansions) have dampened the sense of “tech-optimism.” This has impacted the perception of EVs as a patriotic, green-industrial project, further slowing consumer adoption.
Short-Term Outlook: Is a Policy Correction on the Horizon?
Stockholm is preparing a partial policy correction, with the autumn 2025 budget expected to raise the greenhouse gas reduction mandate for road fuels from 6% to 10%. In addition, a new income-tested EV premium is expected in 2026, aimed at households without access to public transport.
However, authorities still project only a 38% BEV share by 2026, falling short of the 50% share required to meet Sweden’s 2030 climate targets.
Bottom Line: Sweden’s Unique Set of Challenges
Sweden’s retreat from electrification is largely driven by domestic policy shifts, making it a Sweden-specific issue rather than a broader Nordic trend. Norway continues to lead in EV adoption, and Denmark is on track to set new records. Finland’s slowdown is minimal compared to Sweden’s sharp decline.
Without stronger purchase incentives, a robust push for cheap renewable energy, and a better rural charging infrastructure, Sweden risks becoming a cautionary tale for the EU—a case study on how quickly the transition to electrification can reverse when political winds turn against it.
Sweden’s experience could serve as a reminder to other countries that even a well-established green agenda can falter if not supported by consistent, long-term policies and the necessary infrastructure.