In the coming years the price of the combustion fuels will increase as the oil resources deplete. Governments and companies actively look for green renewable solutions. In the next decade the vehicle industry will transform into a more environmental friendly one, where one of the main products will be the electric vehicles. As we focus on the automobile industry in Sweden, the EV market is in its infancy and uncertainty exists about future diffusion of electric vehicles particularly in Sweden. This thesis report aims to determine the essential steps to be taken for the electric vehicles to emerge successfully in Sweden. We also examine the factors to create the market for initial customers of electric vehicles and how Renault Nordic AB can successfully launch and sustain their market. We developed our theoretical framework based on the principles of diffusion of innovation and adoption network. In order to examine the market, we analyzed the demand-side, supply-side and the environment of diffusion of the market. We have interviewed several key players in the market belonging to these specific categories. We deal with many issues related to infrastructure, incentives and so on.