European City Banning ICE Vehicles From Central District: The Details, Why It's Important

The market share of electric vehicles continues to grow, hitting 15% globally earlier this year.

Countries around the world and states in America have put forth bans on the sale of new internal combustion engine (ICE) vehicles in the future.

A European city is taking things a step further.

What Happened: Companies like Tesla Inc TSLA could benefit from bans on the sale of traditional automobiles in the future, with dates of 2025, 2030 and 2035 being targeted.

The ban on new ICE vehicles being sold by manufacturers will increase the market share of electric vehicles sold on the road. ICE vehicles that were previously purchased will still be able to be owned and driven by consumers.

Sweden's capital, Stockholm, has moved forward with an outright ban on ICE vehicles from the city’s commercial and financial district.

According to Electrek, this means the 20-block district, which is around 180,000 square meters, will not allow any ICE vehicles.

The ban will take effect in 2025. The city has a population of around one million people.

Related Link: Tesla Q2 Earnings Highlights: Revenue Beat, EPS Beat, Cybertruck Update And More 

Why It’s Important: The new plans from Stockholm make the city the first to not only ban the sale of new ICE vehicles in the future but also ban old ones from the road.

According to Electrek, some cities have banned diesel cars due to air pollution, but still allow traditional gas-powered vehicles. The report cites that this region also received heavy delivery truck traffic, which could lead to an increase in the sale of electric commercial vehicles in the future.

A July report showed electric vehicle sales up 41% year-over-year globally. Electric vehicles also hit a 16% market share in the month of July and now stand at 15% globally year-to-date.

In Europe, the market share for electric vehicles is significantly higher than in regions like the U.S. Market share for Europe for electric vehicles year-to-date is around 22%.

Tesla has a strong market share in many European countries, including Sweden, which could make the outright ban on ICE vehicles another win for the automotive giant.

Read Next: Tesla Investor Ross Gerber Touts One More Incentive To Buy EVs: 'Saudis Are Gouging ICE Drivers'

Photo: Stockholm, Sweden, Shutterstock