Price cut on clean cars with joint procurement

Stockholm has reduced the price of clean vehicles by buying large quantities, gathering many buyers from all over Sweden. In the first stage of Trendsetter, a large nation-wide procurement was performed. It led to a framework agreement to buy 5,000 vehicles.


Per Westergard

Local small transport companies and companies with larger vehicle fleets have been invited to take part in the procurement. Both biogas and electric hybrid vehicles were included. The purpose has been to push car manufacturers to introduce more clean vehicles onto the market. The long-term goal is a self-supporting market of clean vehicles in Stockholm.

The common procurement process was split into three phases. The first step was a market study to find out the interest among 10,000 enterprises and public institutions with potential buyers. Another market survey looked into what vehicles models were already on the market and the price for them. The second step was an information campaign and the forming of a buyers’ consortium. The last step was the procurement itself, which was a European wide tender invitation to vehicle manufacturers.
   The procurement resulted in framework agreements for purchasing 5,000 vehicles to prices that, depending on model, were 4–15% lower than market prices. It contributed strongly to the early introduction of the Toyota Prius electric-hybrid vehicle in Sweden.

Trendsetter has funded part of the additional cost of the clean vehicles for qualified buyers. There has also been continuous information, education and seminars for the buyers as well as environmental monitoring and evaluation of a part of the vehicles.

During the project, a network called “At least one clean vehicle” was started by the Swedish Television company. Members are companies in Stockholm that have at least one clean vehicle in the organisation. Many of them received subsidies from Trendsetter. The network now has about 40 companies as members and more than 200 clean vehicles have been sold to them. Besides being “ambassadors” for clean vehicles, the network tries to increase the number of fuelling stations for biofuels.