Mathilde Carlier
Research Expert covering transportation and logistics
Automotive industry in Finland - statistics & facts
Between Tesla sourcing stainless steel panels for its Cybertruck from a Finnish supplier in 2023 and Helsinki-based startup Basemark raising around 22 million euros in Series B in 2024 to invest in augmented reality for driving, Finland’s automotive industry is invested in innovation. On a domestic level, however, the country must contend with various challenges. These include an aging car fleet and car sales still 23.4 percent below pre-pandemic levels.
The Finnish automotive industry is in a challenging position with many avenues to explore. However, it must contend with consumers who tend to be loyal to their current vehicle brand, despite still relying heavily on cars for their motorization needs. Forecasts predict the passenger car revenue will reach some 2.7 billion euros in 2028, though the next few years are expected to record fluctuations in the revenue generated by this segment of the industry.
Slow market recovery contends with buying intentions under 50 percent
Most of the enterprises in Finland’s automotive industry are in the wholesale and retail trade and repair of motor vehicles and motorcycles, while only 319 companies were in vehicle manufacturing. Passenger cars were by far the largest segment for motor vehicle sales, over quadruple the size of the second segment in the ranking. However, while the volume of automobiles sold in Finland rose between 2022 and 2023, it struggled to reach its pre-pandemic levels. As of March 2024, over a third of consumers in Finland planned to purchase a car in the next 12 months, which could further impact the sector’s recovery and the many companies working in automotive retail. However, the shift in consumer preference toward electric vehicles could be an avenue to explore to boost the sector. In 2023, battery-electric vehicles were the second most popular fuel type in the country, and less than 5,000 new registrations away from overtaking petrol cars.Consumer loyalty impacts shoppers’ preferences
While new battery-electric vehicle registrations were steadily rising, electric vehicle adoption in Finland still faced hurdles when it came to consumer perception of the market. Three in 10 consumers considered electric propulsion cars when purchasing a vehicle, compared to five in 10 considering petrol or hybrid propulsion. Finns also tended to be loyal to their current car brand, with only 29 percent of them being very likely or likely to change the make of their primarily used car on the next possible occasion, which can add another challenge to car sales as a whole and electric vehicle adoption in particular. However, despite consumer buying intentions under 40 percent, passenger cars remained essential to daily life in Finland. Nearly six in ten Finns used their own or a household car to commute to work, school, or university, compared to just under three in ten Finns using public transport.The Finnish automotive industry is in a challenging position with many avenues to explore. However, it must contend with consumers who tend to be loyal to their current vehicle brand, despite still relying heavily on cars for their motorization needs. Forecasts predict the passenger car revenue will reach some 2.7 billion euros in 2028, though the next few years are expected to record fluctuations in the revenue generated by this segment of the industry.
