Electric vehicle sales have been a hot topic lately, with discussions revolving around the apparent slowdown in global demand. It seems that automakers, who were struggling to meet the soaring demand for EVs just a year ago, have now shifted gears, tapping the brakes on their once-booming electric ambitions.
To put things into perspective, let’s dive into the world of numbers: global electrified vehicles sales saw a year-on-year rise this past January, but experienced a sharp dip from their peak in December. This shift can be attributed to a variety of factors, including subsidy cuts, stricter regulations, or simply a seasonal slump in sales, particularly notable in key markets like Germany, France, and China.
While we don’t have separate figures for EVs and PHEVs, data from Rho Motion indicates that a total of 1.1 million pure electric and plug-in hybrid vehicles were sold globally in January 2024. This marks a significant 69% increase from the 660,000 units sold in January 2023. While a solid result, it also reflects a 26% decrease in sales from December. Additionally, January’s EV/PHEV sales were down compared to those in June, August, September, October, and November 2023.
Read: America’s EV Sales Surge To A Record 1.2 Million In 2023, But Can They Keep Climbing?
Speaking with Reuters, Charles Lester, a data manager at Rho Motion, explained that EV sales in Germany plummeted by approximately 50% in January 2024 compared to December 2023 after the nation withdrew subsidies. A similar decline was observed in France as the country tightened its requirements.
However, Lester remains optimistic about the future, anticipating that this downturn will be short-lived. He notes that car manufacturers are likely to increase spending on new EVs and PHEVs in response to the stricter CO2 limits set by the European Union.
“What is really going to spur on sales is the EU emission standards for 2025,” he said.
More: EV Sales Plunge 55% In Germany As Incentives Dry Up
In January 2024, sales of EV and PHEV models surged by 41% in the United States and Canada compared to the same month last year, yet saw a 14% decline from December 2023. A similar trend was observed in the European Union, European Free Trade Association, and the UK, where sales rose by 29% last month compared to January 2023, but dropped by 32% from December 2023. In China, sales nearly doubled in January but again, experienced a 26% decrease from December.
Unfortunately, Rho Motion has not published figures for only battery-electric vehicles.
One of the most interesting announcements made in the EV/PHEV space in recent weeks came last month when General Motors said it will start selling select vehicles in the U.S. with plug-in hybrid powertrains, allowing it to comply with more stringent fuel economy and tailpipe emissions standards. This move could prompt a rise in sales of hybrids in the U.S. as they serve as a good stepping stone between a traditional combustion-powered car and an EV.
