The global electric vehicle market set a new record in 2024, with 17.1 million battery-powered cars sold, excluding plug-in hybrids. According to data published on January 14 by the British consultancy firm Rho Motion, this represents a 25% increase from the previous year. However, growth varied significantly across regions, largely influenced by government policies.
China fuels market expansion
China solidified its position as the world leader in electric vehicles, accounting for 11 million units sold, a 40% year-over-year rise. In contrast, Europe experienced its first decline after four years of robust growth, with sales falling by 3% to 3 million units. The slowdown in Europe coincided with increased demand for hybrid models, while sales of traditional gasoline and diesel vehicles continued to decline.
United Kingdom emerges as Europe’s leading EV market
In Europe, the drop in sales was partly attributed to Germany’s decision to cut purchase incentives. Meanwhile, the United Kingdom became the region’s top electric vehicle market, with a 21.4% growth in sales, supported by regulatory sales targets for automakers.
North America also saw steady growth, with 1.8 million electric vehicles sold in the United States and Canada, marking a 9% increase.
The impact of government policies
Analysts attribute these market fluctuations to various government measures, such as investment incentives and purchase bonuses. “Both carrots and sticks work,” noted Charles Lester, an analyst at Rho Motion, in an interview with AFP.
However, the future may hold challenges. Lester highlighted that President-elect Donald Trump’s plan to eliminate federal EV purchase subsidies is likely to affect U.S. sales in 2025.
A crucial year ahead for Europe
The European market faces a pivotal year in 2025 as stricter CO2 emission regulations come into force. William Roberts, another analyst at Rho Motion, emphasized that despite the potential push for EV adoption, European governments have not prioritized incentive programs, and the high prices of new electric models remain a barrier.
Additionally, European taxes aimed at curbing imports from Chinese automakers like BYD and MG may start having an impact in the first half of 2025. However, the introduction of Stellantis’ Chinese brand Leapmotor could intensify competition and drive the market forward, experts predict.
