Starting next year, the tax on all electric cars priced above 363,000 Danish kroner will increase, up from the current threshold of 419,000 kroner. Under political agreements, the registration tax will be raised annually until it is fully implemented for all electric cars in the Danish market in 2035, according to BT.
Gradual tax changes until 2035 will directly affect the market.
According to BT, new reports have revealed major tax changes coming that will affect the prices of electric cars in Denmark, with the prices of the three best-selling cars expected to see huge increases in the coming years, as a result of a government plan to gradually raise taxes until 2035.
The source indicated that these increases will result in what was described as a «tax hammer» on future buyers of electric cars, which will cause prices to rise significantly.
End of tax exemption on electric cars
Until now, electric car buyers in Denmark have been exempt from registration tax, which has contributed to the widespread adoption of these vehicles in recent years. However, this advantage will soon disappear, as registration tax will be gradually introduced under a political agreement reached in 2020. The increases will be applied annually until 2035, the year in which the full tax will be levied on all electric cars.
Bestselling cars under scrutiny
In this context, the Danish automotive industry organization Dansk Industri Bilbranchen conducted a study to calculate the future prices of the three best-selling electric cars in 2025, namely:
- Skoda Elroq
- Volkswagen ID.4
- Tesla Model Y
The study showed that these models will become much more expensive once the tax is fully implemented by 2035. Currently, the prices of these cars range between 340,000 and 370,000 Danish kroner, but this situation will change drastically in the coming years.
Huge price increases
Calculations suggest that Danish buyers can expect price increases of up to approximately:
- An additional 190,000 Danish kroner on top of the price of the Tesla Model Y
- 180,000 Danish kroner is the price of the Skoda Elroq
- 160,000 Danish kroner is the price of the Volkswagen ID.4
Thus, the prices of these cars are expected to approach the half-million Danish kroner mark, as indicated by the data published in the website's report.
