Global Electric and Plug-in Hybrid Vehicle Sales Surge

By Alessandro Parodi

(Reuters) – Global electric and plug-in hybrid vehicle sales in January increased by 18% year on year, 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 commenced the year strongly as CO2 emission targets came into effect in the European Union, while the Chinese New Year festivities led to a 43% month-on-month decline in sales, stated Rho Motion data manager Charles Lester.

Why It’s Important

Governments globally are implementing various policies to promote EV adoption, while trade tensions and sluggish car markets pose the threat of plant closures and significant job losses.

China has extended its auto trade-in subsidies into 2025 as part of an expanded consumer trade-in scheme to prevent a slowdown in EV sales and boost economic growth.

Europe also initiated new consultations in January regarding CO2 emission targets, involving auto sector executives, unions, and interest groups.

By The Numbers

Global sales of fully electric vehicles and plug-in hybrids (PHEV) surged 17.7% year on year to 1.3 million in January, marking the third consecutive month of slowing growth, as per Rho Motion data.

Breakdown of sales:

• China: Sales increased by 11.8% year-on-year to 0.7 million vehicles.
• Europe: Reported sales of 0.25 million, an increase of 21% compared to January 2024.
• France: Experienced a 52% drop due to a newly introduced weight tax on PHEVs.
• Germany: Saw an increase of over 40%, partly due to low figures in January 2024 before EV subsidies ended.
• United States and Canada: EV sales rose 22.1% to 0.13 million in January.
• Rest of the World: January sales soared by 50%.

On a month-to-month basis, global sales fell by 35%, largely influenced by a 43% drop in China compared to December.