Electric vehicles in demand as global sales surge in 2024

Electric vehicle sales rose by 25% globally last year, surging in China but slowing in Europe, according to figures published Tuesday by the British consultancy, Rho Motion.

A record 17.1-million battery electric vehicles, excluding plug-in hybrids, were sold last year across the world, according to figures compiled by the firm.

China up, Europe down

China pulled further ahead as the world’s leading market for electric cars, with 11-million sold, an increase of 40% from 2023.

In Europe – including Britain, Iceland, Norway and Switzerland – sales slipped by three percent to three million vehicles after four years of strong growth.

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In an overall declining market in Europe, hybrids took the largest market share at the expense of petrol and diesel vehicles.

The end of state financial purchase incentives to consumers penalised sales in Germany last year, while they jumped by 21.4% in Britain, which became Europe’s top market for electric vehicles, due in part to sales objectives imposed on carmakers.

Outlook for North America

Electric vehicle sales also rose in the United States and Canada, climbing nine percent to 1.8-million vehicles.

Rho Motion noted that government measures, or the absence of them, play an important role in the sales dynamics as electric vehicles remain considerably more expensive.

“What is clear is that government carrots and sticks are working,” said Rho Motion data manager Charles Lester in a statement.

He said plans by president-elect Donald Trump to halt sales incentives would almost certainly have an impact on electric vehicle sales in the United States in 2025.

Europe paying the price

In Europe, tighter emissions limits could help sales of electric vehicles in 2025.

Another Rho Motion analyst, William Roberts, said European governments were not prioritising incentives for electric vehicles and new models were still subject to high tariffs.

European tariffs could begin to slow the import of Chinse electric vehicles made by the likes of BYD and SAIC, which sells under the MG brand.

But with Leapmotor set to begin production in Europe at a Stellantis factory and BYD also building a European factory, Chinese carmakers could continue their conquest of market share, according to the analysts.

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