EVs account for 61 pct of new car sales in Denmark in May

2/6/2025 6:06

Electric vehicles (EVs) accounted for more than 60 percent of Denmark's new car sales in May, reflecting strong consumer interest in green mobility despite growing uncertainty about future car taxation, according to data released by Mobility Denmark on Sunday.

A total of 17,953 new passenger cars were registered in Denmark in May, marking a 23.3 percent increase compared to the same month last year. EVs made up 61 percent of total new registrations, and their share was even higher among private buyers, Mobility Denmark said.

"This shows that Danes have an appetite for new mobility, not least green mobility," said Mads Rorvig, CEO of Mobility Denmark. "But we are also concerned about developments in the near future. Car dealers are experiencing that customers have started to hold back, and this is largely due to the uncertainty about what will happen with car taxes at the turn of the year."

The strong sales performance in May largely reflected orders placed in earlier months. Currently, debate over potential tax changes is causing hesitation among buyers, with industry representatives calling for greater clarity.

Mobility Denmark welcomed the recent statement by Denmark's Ministry of Taxation, which announced that taxes would not increase until the end of this year and that negotiations on the matter would be held with political parties before the summer holidays.

"It is positive that negotiations have been announced. This creates expectations in the market. And we hope it will result in an agreement that provides consumers and the industry with necessary security and predictability," said Rorvig.

According to Mobility Denmark, the top-selling passenger car in May was the Skoda Elroq, with 1,457 units sold. Other leading models included the Volkswagen ID.4, Tesla Model Y, and Volkswagen T-Roc.

Mobility Denmark is the trade association representing car manufacturers in Denmark and publishes monthly car sales reports.

Denmark's current vehicle tax system provides several incentives for zero-emission vehicles. The registration tax for private cars is calculated progressively: 25 percent of the first 72,900 Danish kroner (11,089 U.S. dollars) in 2025, 85 percent of the value between 72,900 and 226,500 Danish kroner, and 150 percent of the remaining value.

For zero-emission vehicles such as electric cars emitting zero CO2, only 40 percent of the calculated tax is payable if the car is registered before 2026, with this rate gradually increasing until full taxation applies in 2035. Additionally, zero-emission cars receive a basic deduction of 165,000 Danish kroner in 2025 from the vehicle registration tax.

Industry observers note that Denmark's tax structure has played a key role in promoting EV adoption in recent years, and future adjustments to these policies will be closely watched by both consumers and automakers.