Denmark could become Europe’s first all-electric car market

Denmark’s could make history in becoming the Europe’s first all-electric car market over the next few years according to INDICATA’s latest Market Watch used car insights report.

INDICATA’s May report showed BEVs up to two years of age accounted for two out of every three used cars sold in the country and 52.2% of all used cars up to four years of age.

Denmark’s top selling used cars in May were all BEVs – the VW ID-4, the Tesla Model 3 and VW ID-3, while the fastest-selling cars were also all BEVs – the Tesla Model 3 and Y and the Skoda Enyaq. BEVs are also on the rise in the LCV sector accounting for 8.8% of sales.

This used demand has more than matched Denmark’s new BEV car sales which accounted for 32.6% of the market in 2023 and are projected at 36.3% for 2024 buoyed by tax incentives. If this new and used BEV ecosystem continues the country looks set to make history as Europe’s first all-electric car market.

“Our Market Watch report confirms that the desire from governments to push the move to BEVs has been met by weak public demand across the whole of Europe. However, the only exception is Denmark where both the new and used markets are experiencing healthy sales,” explained Andy Shields, INDICATA’s global business unit director.

“During 2024 used BEVs have overtaken ICE cars and demand is such that cars are being imported from countries like France to help meet demand.

“The success of a new car market relies on a healthy used car market and Denmark is getting this balance just right. More countries will be looking to learn from Denmark to breathe life into their used BEV markets,” he added.

The Danish market is also unique in another area regarding used vehicles. INDICATA’s Market Days’ Supply metric looks at the amount of stock compared to sales run rate. In almost every other European market, BEVs have the worst MDS by a long way, whereas in Demark, it has the best MDS, 52 days, which is significantly better than second-placed PHEV/HEV and petrol at 65 days.

The only country that has come close to Denmark is Norway where a wide range of incentives has increased the speed at which BEVs have been onboarded. In 2023 BEVs accounted for 82.4% of new car sales while the Norwegian EV Association predict this figure will increase to 95% in 2024.

However, Norwegian consumers have been slower to embrace used BEVs, with many cars being exported to other European countries to balance supply with reduced demand.