Global electric and plug-in hybrid vehicle sales surged by 18% year on year in January, with Europe and the United States seeing faster growth than China for the first time in nearly a year, according to research firm Rho Motion.
The European market began the year strongly, driven by the implementation of CO2 regulations in the European Union, while Chinese New Year holidays contributed to a 43% decrease in sales in China, explained Rho Motion data manager Charles Lester.
Governments worldwide are implementing various strategies to promote electric vehicle adoption. Simultaneously, trade tensions and a slowdown in the automotive market are signaling potential plant closures and substantial job losses.
China extended its EV subsidies until 2025 in January as part of an expanded consumer trade-in program aimed at preventing a sales slowdown and stimulating economic growth.
In Europe, discussions on CO2 emission targets are ongoing among auto industry stakeholders, including executives, unions, and interest groups.
Global sales of fully electric vehicles and plug-in hybrids reached 1.3 million units in January, marking a 17.7% increase year on year. Notably, China recorded an 11.8% rise with 0.7 million vehicles sold, while Europe saw a 21% increase with 0.25 million units sold, compared to the same period in 2024.
France experienced a 52% decline in sales due to a new weight tax on plug-in hybrids, while Germany's sales surged by over 40%, partly attributed to low figures in January 2024 when EV subsidies were abruptly terminated.
In the United States and Canada, electric vehicle sales escalated by 22.1% to 0.13 million units in January.
The rest of the world witnessed a significant 50% increase in January sales.
However, on a monthly basis, global sales plummeted by 35%, mainly driven by a 43% decline in China compared to December.