Global sales of electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) rose by 18% year-on-year in January, with growth in Europe and the United States surpassing that in China for the first time since last February, according to research firm Rho Motion.
The European car market began the year robustly as new CO2 emission targets came into effect in the European Union. In contrast, the Chinese market experienced a 43% month-on-month decline in sales, attributed to the Chinese New Year holidays, noted Charles Lester, Data Manager at Rho Motion.
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In numerical terms, global sales of fully electric vehicles and plug-in hybrids reached 1.3 million units in January. China accounted for 0.7 million vehicles, marking an 11.8% year-on-year increase. Europe reported sales of 0.25 million units, a 21% rise from the same month in 2024. The United States and Canada combined saw a 22.1% increase, totaling 0.13 million vehicles sold.
Among European markets, France experienced a 52% decrease in sales, influenced by the introduction of a weight tax on PHEVs. Conversely, Germany saw an increase of over 40%, partly due to low figures in January 2024, when EV subsidies ended abruptly.
See also: UK EV Sales Rise in January, but Market Share Still Below Government Mandate
On a monthly basis, global sales decreased by 35%, primarily due to the significant drop in the Chinese market compared to December.
Governments worldwide are implementing various policies to encourage EV adoption amid trade tensions and economic challenges. In January, China extended its auto trade-in subsidies into 2025 as part of an … to prevent a slowdown in EV sales and stimulate economic growth. Europe initiated consultations on CO2 emission targets … , and interest groups during the same period.
See also: Germany Registers 34,498 New EVs in January, Surpassing Diesel with 16.6% Market Share
Looking ahead, Rho Motion forecasts that global sales of fully electric and plug-in hybrid vehicles will increase by at least 17% in 2025, surpassing 20 million cars. This growth is expected to be supported by China’s extension of auto trade-in subsidies and Europe’s new CO2 emission targets, along with the availability of more affordable models.