Sweden - Automotive Parts and Accessories Sweden - Automotive Parts
Sweden, with a population of about 10 million, had 5 million vehicles registered in June 2019. The automotive industry plays a central part in the Swedish economy; motorized vehicles are the top export category and the three major automotive manufacturers, Geely owned Volvo Cars, Scania, and Volvo Group, together employ about 170,000 people, of which 50,000 are staffed in Sweden.
Sweden is a global leader in renewable energy and alternative fuels use. The Swedish government has pledged to cut CO2 emissions by 40 percent in 2030 relative to 1990 levels, and has provided subsidies (supermiljöbilspremie) and vehicle tax cuts to people buying environment friendly classified vehicles. These incentives have arguably caused a shift in sales from gasoline cars towards environment friendly cars.
On July 1, 2018 a Bonus Malus system was introduced for newly registered passenger cars, light lorries and light buses, to further increase the amount of environmentally friendly vehicles and achieve the goal of a fossil-free fleet. Vehicles with no or very low carbon dioxide emissions of up to 60 g/km, can now get a bonus of up to SEK 60 000. The malus part on the other hand, entails increased vehicle tax for petrol/diesel vehicles.
In the subset of environmental friendly classified vehicles, electric and electric hybrid cars are on the rise. In 2018, there were 28 332 new registrations for electric/hybrid vehicles.
The share of sales of electric and electric hybrid vehicles have increased steadily in the last ten years, however, from 1 percent in 2006 to 7 percent in 2016. Manufacturers are focusing more and more resources into electricity and recent developments include the launch of the world’s first eHighway in Gävle as well as Volvo’s launch of a separate electric car brand, Polestar, to compete with Tesla. This trend is likely to continue for the foreseeable future. Trafikanalys, Sweden’s government agency for transport policy analysis, estimates that the share of newly registered electric/hybrid vehicles will continue to grow up to approximately 30 percent by 2020. So good prospects exist for products in this segment.
Another trend is autonomous vehicles, where Sweden is at the forefront of driverless technology. To foster its development, the Swedish government launched Drive Sweden in 2015, a Strategic Innovation Program between companies, government agencies, and universities. While still early in development, recent advances include Drive Me, a project by Volvo where 100 fully autonomous cars are used by ‘normal’ consumers in real-life traffic in Gothenburg, as well as Scania’s autonomous truck platoon system, which will be piloted in Singapore.
Generally, Sweden offers a good market for high-quality and technically sophisticated automotive products. Good prospects exist for products within the safety and environment sectors. Swedes are very safety conscious and the manufacturers are known to follow high safety standards.
In regards to the aftermarket, OEMs and IAMs split the market 50-50 and the aggregate turnover of IAMs is estimated to USD 2.9 billion. With a large fraction of outdated cars (more than half of all Swedish passenger cars are older than 10 years), and ever increasing technological sophistication and environmental and safety rules, there is a growing need for properly-equipped auto shops that can meet the demand for repair and maintenance. Overall however, the aftermarket is a stable market with 1-2 percent annual growth.
Classic US cars and muscle cars are very popular in Sweden. The Swedish Federation of Historic Vehicle Clubs has 200 registered member clubs with over 100,000 members. They estimate that there are at least 250,000-300,000 historic vehicle enthusiasts in Sweden.
Customizing cars is a trend, and many Swedes consider the United States to be the leading country when it comes to styling and tuning of cars, especially vintage American vehicles. Best prospects for customizing cars are tires and wheels, lowering kits, exhaust systems, body kits, spoilers, lighting equipment, and stereo and video equipment.
Moreover, due to the long, cold, and dark winters, equipment such as engine heaters, winter tires, roof boxes for skis, and extra lights are in demand. Good prospects thus exist for such products that deal with the Swedish climate.
BIL Sweden
FKG (The Scandinavian Automotive Supplier Association)
MRF (Motorbranschens Riksförbund)
SBF (The Association of Swedish Wholesalers of Automotive Parts and Accessories),
Trade Events
Electric cars: eCarExpo Nov 28-Dec 1, 2019, in Gothenburg & Feb 7-9, 2020 Stockholm
Truck exhibition: Elmia Lastbil 2020 August 19-22, 2020, Jönköping
Bilsport Performance & Custom Motor Show April 10-13, 2020, Jönköping
The Auto Trade Fair: Automässan Jan 15-18, 2020, Gothenburg
Local Commercial Specialist: Johan Bjorkman, johan.bjorkman@trade.gov