SWEDEN: Green car sales seen quadrupling by 2012
Swedish flex-fuel and other 'green' car sales could nearly quadruple by 2010-2012, industry observers told just-auto.
The market could reach 150,000 units, up from a 40,000-unit forecast for 2006. That's half of the overall Swedish car market, which is expected to grow to 300,000 units in 2010 from a 285,000-unit forecast this year.
The government is considering introducing a series of measures to boost the greencar trade, already heavily subsidised, this month, according to Mattias Goldmann, a spokesman for the Swedish Association of Green Motorists.
"We don't know exactly what the government will do but we know there will be new incentives," Goldmann said.
Sweden is leading Europe's biofuels market (both in meeting blending targets and developing retail
infrastructure) as it moves to stay at the "forefront"
of Europe's green movement.
Swedes pay no parking or congestion charges to drive flex-fuel, biogas, hybrid or small cars emitting less than 120 grams of CO2 per kilometre.
They also get a significant tax credit on models purchased for work.
On top of these incentives, the state could introduce a EUR1,100 tax credit for flex-fuel purchases or half that credit and double it to EUR3,300 for higher-priced biogas models.
Goldmann said the government is likely to double the biogas incentives to grow the market, especially after Volvo said it would scrap its biogas line due to slumping demand.
"The incentives are too small to make biogas worth it and we can't allow Volvo, a national car maker, to discontinue production," he noted.
A spokesman for the Swedish Automobile Association is confident the subsidies will rise.
However, he doubts the market will grow to 160,000 units without further government and business action.
For one thing, ethanol costs 2% more than petrol and prices must come down to woo consumers to buy flex-fuel cars which account for over 70% of the market and could make up even more in future, the spokesman said.
Moreover, the number of models must rise from 15 now (versus over 100 for petrol) and the market to tweak petrol cars to run on biofuel must develop.
"You can convert petrol models to flex-fuel for just EUR1,000," the spokesman noted, adding that the government will introduce a regulatory framework for this market in coming months.
After years of denying the validity of climate change research and pulling the US out of the Kyoto Agreement, President Bush has set goals to increase the use of cleaner fuels....
As automotive industry delegates gathered recently in Prague for the annual Automotive News Europe Congress, there was plenty to talk about. Corporate restructuring in the industry was on everyone's l...
General Motors on Thursday said it would sell its Allison Transmission commercial and military business to The Carlyle Group and Onex Corporation for approximately $US5.6bn....
European automobile manufacturers have welcome the recognition last night by the EU Council of environment ministers of an integrated approach to reduce further CO2 emissions from cars....
The president and CEO of Volvo has refused to be drawn on speculation that parent company Ford may look to offload the business....
The Jeep brand is to launch a three-phase dvertising campaign with the strapline "Have fun out there. Jeep"....
Jaguar and Land Rover will almost certainly be bought by private equity investors as there is no interest from any other car companies around the world, according to a leading London city analyst....
There was a lot of scepticism in General Motors Europe about using the Chevrolet brand in Europe according to Vauxhall chairman Jonathan Browning....
- ANALYSIS: Hyundai axes Veloster, goes after Toyota
- ANALYSIS: Future models for North America - Part 2
- Review of 2014 (1)
- ANALYSIS: Future models for North America - Part 1
- THE WEEK THAT WAS: Another year races by
- Genk mayor organises "loudest shift" as Ford exits
- JLR research removes blind spots
- Bye, Chrysler, hello FCA US
- Punch Genk offer "missed opportunity": Mayor
- Volvo rethinks its way to market