Global sales of electric and plug-in hybrid vehicles increased by 18% year-on-year in January, marking the first time since February 2023 that growth in Europe and the United States outpaced China, research firm Rho Motion reported on Wednesday.
The European market saw a strong start to the year as new CO2 emission targets took effect across the European Union. Meanwhile, China’s EV sales plummeted by 43% compared to December due to the Lunar New Year holiday, according to Rho Motion data manager Charles Lester.
Governments worldwide are implementing various policies to boost EV adoption, though trade tensions and slowing auto markets threaten job losses and plant closures. In January, China extended its vehicle trade-in subsidies through 2025 to sustain EV demand and stimulate economic growth.
Meanwhile, European regulators launched fresh consultations on emission targets, engaging industry stakeholders to shape future policies.
Global EV sales rose 17.7% year-on-year to 1.3 million units in January, with Europe and North America outpacing China for the first time in nearly a year.
China, the largest EV market, saw sales grow 11.8% to 700,000 units, though a 43% month-on-month decline occurred due to the Lunar New Year holiday. The government extended auto trade-in subsidies to sustain demand.
Europe’s sales climbed 21% to 250,000 units, driven by new CO2 targets. France’s sales fell 52% due to a new weight tax, while Germany saw a 40% surge after a subsidy cut in early 2024.
In North America, sales rose 22.1% to 130,000 units, while the rest of the world saw a 50% increase.
However, on a month-to-month basis, global EV sales dropped by 35%, largely driven by China’s sharp decline.
