Swedish driver gets electric car for 200 kroner as calls grow for Denmark to adopt similar subsidy

A Swedish income-based subsidy scheme has allowed a driver to effectively purchase an electric car for just 200 kroner (around €18), prompting calls in Denmark for a similar system to make electric vehicles more accessible to low-income households, reports DR.

Erik Lange, a resident of the Swedish village of Gripenberg, paid approximately 65,000 Swedish kroner (€5,700) for a used 2014 VW electric car. Under Sweden’s new scheme, he will receive 64,800 kroner (€5,700) in subsidies over the next three years due to his household’s low income and rural location. “It’s the best car purchase I’ve ever made,” he told Swedish broadcaster SVT. The programme, launched this year, has been overwhelmed with applications and will remain open until June 2029.

In Denmark, the Red-Green Alliance (Enhedslisten) has proposed adopting a similar model. “The Swedish approach is very appealing—ideally combined with a leasing scheme so a low-income family could lease an electric car for around 1,000 kroner (€135) a month,” said climate and transport spokesperson Leila Stockmarr.

Germany has also recently introduced an income-based subsidy, with support levels depending on household earnings, number of children, and vehicle type. Danish politicians from both the Danish People’s Party and rural advocacy groups argue that current Danish policies—primarily tax exemptions for new electric cars—disproportionately benefit high earners in affluent urban areas.

Criticism of Denmark’s “regressive” approach

Anders Vistisen of the Danish People’s Party called the existing system “the most significant top-bracket tax cut ever,” noting that wealthier Danes are far more likely to buy new electric cars. Data from Statistics Denmark shows that older petrol and diesel vehicles remain dominant in rural and low-income areas.

Steffen Damsgaard, chair of the Rural Districts Council, stressed that green transitions—including electric vehicles, heat pumps, and home insulation—must be feasible nationwide, not just in high-income regions. “The green shift should be possible across the country, not just for the wealthy,” he said.

The Danish Motorists’ Association (FDM) has criticised the current model as an “inverse Robin Hood,” where “money is taken from the poor and given to the rich.” Political director Torben Lund Kudsk noted that tax exemptions for expensive electric cars have effectively provided hundreds of thousands in indirect subsidies to affluent buyers, creating a divide between those who can afford new EVs and those who cannot.

Subsidy debate stalled by election

The gap has widened this year due to soaring fuel prices and a government decision to delay planned tax increases on electric cars, keeping vehicles under 420,000 kroner (€56,500) effectively tax-free. Enhedslisten’s Stockmarr previously labelled this a “1.3 billion kroner tax cut for rich car owners.”

A government-appointed expert panel was tasked with reforming vehicle taxation but has been paused during election campaigns and coalition negotiations. Its future—and any potential 2027 reforms—now depends on the next government.