Electric car registrations in Denmark have surged by 22% over the past year, signaling a significant shift in consumer preferences. This increase coincides with a sharp decline in sales of petrol and diesel cars, which have fallen by over 25% and nearly 48% respectively.

According to recent data from Statistics Denmark, 12,121 new electric vehicles were registered in June, with electric cars now accounting for 85% of new household car purchases. Leasing options are contributing significantly to this trend, with private leasing representing a third of new car acquisitions by households. The Skoda Elroq has emerged as the top-selling electric car in the first half of the year, followed by Volkswagen ID.4, Tesla Model Y, and Volkswagen ID.3.

Mads Rørvig, CEO of Mobility Denmark, attributes this growth to two key factors: tax exemptions for electric vehicles and an increasing availability of diverse electric car models. Denmark’s tax system imposes high taxes on petrol and diesel cars (up to 150%), while electric cars benefit from lower rates. Rørvig highlights that the availability of electric cars at various price points and with suitable technical specifications is catering to the diverse needs of Danish car buyers. He emphasizes that economic considerations are the primary driver behind the shift to electric vehicles, noting that progress in other countries with similar access to electric cars has been slower.

However, changes to car taxes are on the horizon, with the current tax exemptions for electric cars set to expire at the beginning of the new year. Registration taxes will gradually be introduced until 2030. Negotiations are underway to reform car taxation, potentially shifting from a one-time registration tax to continuous taxation.

Rørvig advocates for a complete removal of the registration tax, suggesting an increase in the semi-annual CO₂ ownership tax for heavier electric car models. He urges politicians to expedite the decision-making process, as tax implications significantly impact car prices. While the final tax structure remains uncertain, recent statements from radical and conservative spokespersons suggest a willingness to restructure car taxes substantially.