Automotive industry in Sweden
Sweden’s automotive industry centers on Volvo Cars and Saab Automobile, with AB Volvo and Scania AB among the world’s largest truck makers. Most Swedish cars and heavy vehicles are sold abroad: about 85% of passenger cars and 95% of heavy vehicles are exported. The sector is a major part of Swedish industry, employing around 110,000 people in 2011 and generating about 150 billion SEK in exports, roughly 12% of Sweden’s total export income. In 2009 Sweden produced about 128,700 passenger cars and 27,700 heavy vehicles.
Key moments in Sweden’s automotive history:
- 1891-92: The first Swedish automobile, a steam car built by Jöns and Anders Cederholm, made for travel between home and a summer house; a second improved steam car is now preserved in Skurup.
- 1898: Gustaf Erikson builds an internal combustion car for Vabis in Södertälje; production begins in 1902.
- 1900: Harald Håkansson creates Sweden’s first electric car prototype for AB Atlas; it did not go beyond the prototype.
- 1902: Maskinfabriks-aktiebolaget Scania in Malmö starts making cars and trucks; in 1911 it merges with Vabis to form Scania-Vabis.
- Early 1900s: Small manufacturers appear, such as Tidaholms Bruk (Tor truck), Åtvidabergs Vagnfabrik, and AB Thulinverken.
- 1920s-1930s: Ford and General Motors open assembly plants in Sweden; Volvo begins passenger car and light truck production in Gothenburg in 1927, with trucks helping the company stay profitable.
- 1949: Saab AB starts producing passenger cars in Trollhättan.
- 1950s-1960s: Volvo and Saab expand exports, including to the United States and the United Kingdom.
- 1969: Saab merges with Scania-Vabis to form Saab-Scania (later just Scania for trucks).
- 1970s-1980s: Volvo’s mid-range and premium models help growth; Saab expands with the larger 9000 in the 1980s.
- 1989: General Motors takes Saab under its control; 1993: Volvo considers merging with Renault and ends up with Renault’s truck business while Renault takes a stake in Volvo.
- 1994: Koenigsegg is founded; 1999: Volvo Cars sells to Ford; 2001: GM gains control of Saab Automobile; Volvo later sells its Scania stake to Volkswagen.
- 2002: Koenigsegg delivers its first production car; the company remains a rare Swedish specialty maker.
- 2008-2010: The global auto industry crisis hits hard; in 2009 Volvo Cars is sold to Chinese Geely; Saab changes hands multiple times and eventually goes bankrupt (Spyker briefly owned it in 2010–2011; NEVS buys the remains in 2012).
- 2013: Volvo AB announces a heavy-truck joint venture with Dongfeng in China, aiming to become the world’s largest heavy-truck producer.
- 2016: Uniti Sweden raises funds to develop a lightweight electric city car in Sweden, planning to produce about 50,000 cars per year with a range around 300 km and top speed about 120 km/h, powered by biocomposite and carbon-fiber construction.
This page was last edited on 2 February 2026, at 15:08 (CET).