- EV sales soared globally in 2024, but subsidy cuts highlight their fragile growth.
- China’s electric vehicle market surged 40%, solidifying its global dominance.
- Sales of vehicles with a plug jumped almost 9% in the US and Canada last year.
Global sales of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) surged in 2024, exceeding 17 million units, representing a substantial 25.6% jump compared to the previous year. December alone set a new milestone, with sales climbing to a record-breaking 1.9 million units. But it’s not all smooth driving, as data from Europe shows the devastating effects of withdrawing EV subsidies. If Donald Trump removes similar incentives in the US, the same impact could be felt locally.
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According to figures from Rho Motion, 17.1 million EVs and PHEVs were sold worldwide in 2024. A significant portion of this growth can be credited to China where cars with a plug continue to surge in popularity. In fact, out of the 17.1 million units sold globally, no less than 11 million of them were sold in China, representing a 40% increase over the prior year.
China’s Domination Continues
Plug-in hybrids saw a particularly sharp rise in popularity in China, with sales skyrocketing by 81%, compared to a more measured 19% growth for fully electric vehicles. Extended-range EVs are also gaining traction, driven by demand for better convenience and practicality.
More: Global EV Sales Projected To Rise 30% In 2025
In North America, EV and PHEV sales increased by approximately 8.8%, reaching a combined total of 1.8 million units. December was an especially strong month, with 185,000 vehicles sold across the U.S. and Canada, setting a new monthly record.
Subsidy Rollbacks Hit Europe Hard
Not every region saw such rosy growth. In the EU, EFTA, and the UK, EV sales declined by 3%. This is primarily because of the removal of subsidies in Germany, which has had a flow-on effect for much of Europe. Perhaps the only piece of good news to come out of this region is the fact that the UK’s overall EV market grew 20%, due in part to its impending ZEV mandate. The rest of the world accounted for 1.3 million EV and PHEV sales, representing a 27% gain.
Global EV And PHEV sales
Testing times ahead
According to Rho Motion, the “EV market in the US will be tested in 2025,” if the incoming Trump administration axes the $7,500 federal EV tax credit and relaxes EPA emission standards.
“What is clear is that Government carrots and sticks are working,” data manager Charles Lester said. “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.”
