Global electric vehicle (EV) sales reached a record 17.1 million units in 2024, marking a 25% increase compared to 2023, according to new data from Rho Motion, a leading EV research firm. December 2024 saw over 1.9 million EV units sold globally, a 5% increase over the previous month’s record. While most major regions experienced growth, significant regional disparities emerged.
Regional Performance Highlights
- China Leads the Charge: China’s EV market surged by 40% in 2024, with over 11 million units sold. December also marked a new monthly sales record, with over 1.3 million units sold. Plug-in hybrid electric vehicles (PHEVs) played a significant role in this growth, increasing by 81%, compared to battery electric vehicle (BEV) growth of 19%.
- North America Shows Steady Growth: The US and Canada market saw a 9% increase in 2024, reaching 1.8 million units. This growth was attributed in part to vehicle tax credits, though their future remains uncertain.
- European Market Declines: In contrast to other regions, the European market experienced a 3% decline in 2024, despite over 300,000 units sold in December. This downturn is attributed to the removal of subsidies in key markets like Germany and the anticipation of stricter EU emission standards in 2025.
Factors Influencing Market Performance
Rho Motion’s Data Manager, Charles Lester, highlighted the impact of government policies on EV adoption: “What is clear is that Government carrots and sticks are working. In N. America, the 9% growth can mostly be attributed to consumer subsidies and over in the UK, the ZEV mandate has highly incentivised manufacturers to push their low emission cars. Meanwhile the removal of subsidies in Germany had a devastating impact on the whole European market, if the US follows suit, we may see the same there.”
Regional Breakdown
- EU, EFTA, and UK: Despite a 12% month-on-month increase in December, the region finished 2024 down 3% compared to the previous year. The UK surpassed Germany in BEV sales due to the ZEV mandate, while Norway maintained its world-leading EV penetration rate of over 90%.
- China: The Chinese market benefited from a doubled car trade-in scheme and the strong performance of domestic manufacturers like BYD, which accounted for roughly one-third of all new EV sales. The rise of range-extender electric vehicles (REEVs) also contributed to PHEV growth.
- US and Canada: Despite the positive growth in 2024, the US market faces potential challenges in 2025 with possible changes to EPA emission standards and EV tax credits. However, ongoing investments in EV and battery manufacturing facilities, including Rivian’s recent conditional loan from the Department of Energy, demonstrate continued commitment to the sector.
Looking Ahead
While the global EV market experienced significant growth in 2024, regional variations highlight the importance of government policies and market dynamics. The future of EV adoption in key markets like the US and Europe will depend heavily on policy decisions and continued investment in infrastructure and manufacturing.
Source: Rho Motion
