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Global electric vehicle (EV) and plug-in hybrid (PHEV) sales rose 18% year-on-year in January, reaching 1.3 million units, according to Rho Motion. For the first time since February 2023, growth in Europe and the U.S. surpassed China, driven by regulatory changes and consumer incentives.
Europe saw a strong start to the year as new CO2 emission targets took effect, boosting sales by 21% to 0.25 million units. However, France experienced a 52% drop due to a new weight tax on PHEVs, while Germany’s EV sales surged over 40%, partly due to weak figures in early 2024 when subsidies were cut.
In the U.S. and Canada, EV sales increased by 22.1% to 0.13 million. Meanwhile, sales in other global markets surged 50%.
China, the world’s largest EV market, saw a more modest 11.8% growth year-on-year, reaching 0.7 million units. However, sales plunged 43% from December due to the Lunar New Year holiday. To counter a potential slowdown, China extended its auto trade-in subsidies into 2025, aiming to boost EV adoption and economic growth.
Despite annual gains, global EV sales dropped 35% from December, primarily due to China’s decline. Industry experts are closely monitoring policy changes, trade tensions, and market trends as governments worldwide push for greater EV adoption.
With automakers adjusting strategies to meet regulations and shifting consumer demand, the EV market remains a focal point of global economic and environmental policies.
