Sales of electric cars increased by 25% worldwide in 2024, with a clear increase in China but an initial slowdown in Europe, according to figures published on Tuesday by the firm Rho Motion. Throughout the year, 17.1 million battery-powered cars were sold (excluding plug-in hybrids), which represents a new record, according to registration figures collected by this British firm.
China, the world pioneer of electric cars, continues to lead the market with 11 million vehicles sold (+40% in one year). In Europe (including the United Kingdom, Switzerland, Norway and Iceland), after four years of strong growth, sales of electric models fell slightly for the first time, to 3 million units (-3%). In a very slow European car market, hybrid models have gained large market shares, while gasoline and diesel models have declined.
Sales of electric models were especially affected by the elimination of purchase aid in Germany, while they increased in the United Kingdom (+21.4%), which has become the first electric market in the region, in particularly thanks to the establishment of sales objectives for manufacturers. The market also grew significantly in the United States and Canada with 1.8 million cars sold (+9%).
“Carrot and stick work”
Both up and down, this evolution is largely due to government measures, such as investment aid for companies. Scrappage and purchase bonuses are also essential, while electric models remain generally more expensive than their hybrid or petrol equivalents.
“Carrot and stick work,” Rho Motion analyst Charles Lester told AFP. In this context, the elimination announced by the US president-elect, Donald Trump, of purchase aid will “surely” have an effect on electricity sales in 2025 in the United States, he stressed.
Europe will experience a crucial year with the entry into force of stricter rules on CO2 emissions, which could boost the electricity market. However, European governments have not put incentive programs “at the top of their list” and, at the same time, manufacturers’ new electric models are keeping prices high, noted William Roberts, another Rho Motion analyst.
European taxes that were supposed to curb imports from Chinese manufacturers such as BYD or MG could begin to take effect in the first half of 2025, but the arrival of Stellantis’ Chinese brand, Leapmotor, could accelerate its conquest of the market, analysts added.
Source: BFM TV
