(Source: Green Car Congress & NGVA Europe)

Image via Apture

The monthly sales rate of natural gas vehicles in Sweden has increased from about 150 to more than 700 units,according to NGVA Europe. The results are largely driven by the new Volkswagen TSI Passat EcoFuel (earlier post) (60% of sales) and the Mercedes B 170 NGT (earlier post) (24% of sales).

Most of the company cars are medium sized sedans or wagons. Cars like the new Volkswagen Passat TSI EcoFuel, and the Mercedes B 170 NGT (see picture on the right while refuelling at a NG/biomethane filling station of Fordonsgas), belong in this category, and explain the strong growth this year of the Swedish NGV sales. More than 50 % of all new cars sold in the Swedish market are company cars supplied to employees and used both for company and private purposes.

The employee pays income tax based on the assessed value of the car and the value of any fuel paid for by the company. For hybrids and for NGVs the value of the car is reduced by 40 % and for flex fuel cars by 20 %, to stimulate the use of environmentally superior technologies. The 40 % reduction is limited to maximum 16.000 SEK annually which, with a marginal tax rate of 50 %, means a net tax saving of 8.000 SEK (some 800 EUR) annually. The lower fuelling costs also mean a corresponding reduction of tax on the value of fuel paid for by the company. A reduction of the annual fuel costs by say 600 EUR thus normally means a 300 EUR tax saving.

Sweden at the end of 2008 had just under 17.000 NGVs and the Swedish NGV sales in June ran at an annual rate of 8.700 vehicles. Sales of new NGVs are now accelerating and may soon reach about 800 units monthly, corresponding with an annual sales rate of close to 10.000 vehicles. The graph shown below clearly illustrates the importance of the now available new models in the company cars segment (also well suited for the Swedish taxi cab segment).

In June 2.9 % of all new passenger cars sold in Sweden were NGVs!

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