Sales of electric vehicles (EVs) and plug-in hybrids reached 17.1 million units globally in 2024, marking a 25% increase compared to the previous year, according to a report by UK-based market research firm Rho Motion. While the global market experienced robust growth, significant regional differences emerged, with China leading the charge and Europe facing a contraction.
The report highlighted a strong close to the year, with consecutive monthly records from September to December. An average of 1.4 million EVs and plug-in hybrids were registered globally each month, peaking at 1.9 million in December. The study’s scope included passenger cars and light commercial vehicles, encompassing all externally chargeable models such as battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and range-extender electric vehicles (REEVs).
China remained the dominant market, accounting for 64% of global sales with 11 million units, representing a 40% year-on-year increase. Growth in China was driven by an 81% surge in PHEV sales, attributed to rising demand for range-extender models and a generous scrappage scheme, which was doubled mid-year and extended into 2025.
Europe, in contrast, saw a decline in sales, with a 3% decrease compared to 2023, largely due to the withdrawal of subsidies in key markets like Germany. Nonetheless, the UK market bucked the trend, recording over 400,000 BEV sales—a 20% increase—bolstered by regulatory measures such as the Zero Emission Vehicle (ZEV) mandate. Norway continued to lead in market penetration, with BEVs comprising 89% of all new vehicle registrations.
North America experienced moderate growth, with 1.8 million units sold in the U.S. and Canada, reflecting a 9% increase. The report attributed this growth to consumer subsidies and regulatory incentives. However, uncertainties loom, as incoming U.S. leadership may reconsider federal EV subsidies and emissions standards, potentially altering market dynamics.
The findings underscore the pivotal role of government policies in shaping regional EV markets. While China capitalized on subsidies and technological advances, Europe’s contraction highlights the sensitivity of EV adoption to policy changes. As global automakers navigate these disparities, the report emphasizes the need for adaptive strategies to sustain growth in the face of evolving regulatory and market conditions.