Global electric car sales rose by 25 percent last year, driven by a surge in China but slowing in Europe, according to figures released on Tuesday by British consultancy Rho Motion.
A record 17.1 million battery electric vehicles (excluding plug-in hybrids) were sold worldwide last year, according to data compiled by the firm.
China maintained its position as the world’s leading market for electric cars, with 11 million vehicles sold, marking a 40 percent increase from 2023.
In Europe (including Britain, Iceland, Norway, and Switzerland), sales fell by three percent to three million vehicles after four years of strong growth. In a generally declining market, hybrids gained the largest market share, at the expense of petrol and diesel vehicles.
The end of state financial incentives for consumers negatively impacted sales in Germany last year, while sales in Britain surged by 21.4 percent, making it Europe’s top market for electric vehicles, partly due to sales targets set for carmakers.
Electric vehicle sales also rose in the United States and Canada, climbing by nine percent to 1.8 million vehicles.
Rho Motion highlighted that government policies, or the lack thereof, play a key role in the sales dynamics, as electric vehicles remain significantly more expensive.
“What is clear is that government incentives and penalties are effective,” said Charles Lester, data manager at Rho Motion.
He noted that plans by president-elect Donald Trump to end sales incentives could likely impact electric vehicle sales in the United States in 2025.
In Europe, tighter emissions limits could boost electric vehicle sales in 2025.
Another Rho Motion analyst, William Roberts, pointed out that European governments were not prioritizing incentives for electric vehicles, and new models were still subject to high tariffs.
European tariffs could potentially slow the import of Chinese electric vehicles from companies like BYD and SAIC, which sells under the MG brand.
However, analysts suggest that Chinese automakers could continue to increase their market share, with companies like Leapmotor set to begin production in Europe at a Stellantis factory, and BYD also building a European factory.
