The global electric vehicle (EV) market surged to new heights in 2024, marking a 25% year-over-year growth and culminating in 17.1 million EVs sold worldwide. December alone saw record-breaking sales of 1.9 million units, a 26% increase compared to the same month in 2023. Despite a stabilisation of the growth in Europe, the Chinese market grew by an astonishing +40%, representing 11 million cars with a plug. Subsidies, tax credits, and stringent emission standards were pivotal in driving EV adoption in 2024. China’s trade-in scheme, Europe’s emission pooling strategies, and North America’s tax credits highlight how regulatory frameworks influence consumer and manufacturer behaviour.
China: The Dominant Force
China retained its position as the largest EV market, accounting for a significant portion of global sales. The country achieved a record-breaking 1.3 million EV sales in December 2024, contributing to an annual total of 11 million units—an impressive 40% year-over-year increase. Much of this growth can be attributed to the dominance of domestic automaker BYD, responsible for one in three EVs sold. China’s robust trade-in scheme and continued incentives further bolstered market expansion.
Europe: stabilization amid policy shifts
Europe’s EV market faced mixed outcomes, finishing the year 3% lower compared to 2023. However, the United Kingdom emerged as the new leader in battery electric vehicle (BEV) sales, overtaking Germany, primarily due to implementing the UK ZEV (Zero Emission Vehicle) mandate. Automakers in Europe are preparing for stringent 2025 emissions standards, with collaborative carbon credit pools already announced to avoid regulatory fines. Despite challenges like subsidy cuts in Germany, stabilization in December with 310,000 units sold—a slight 0.7% year-over-year increase—indicates resilience.
United States and Canada: steady progress
The North American EV market grew by 9% in 2024, recording 190,000 units sold in December. The $7,500 federal EV tax credit played a crucial role in sustaining sales momentum, though its future remains uncertain under potential policy shifts in the upcoming Trump administration. Alongside the Environmental Protection Agency’s emission standards, these factors will likely shape the North American market’s trajectory in the coming years.
Rest of the World: Emerging Opportunities
Outside of these key markets, EV sales rose by 26.4% in December 2024. Regions across Asia-Pacific, Latin America, and Africa are beginning to show increased adoption as governments introduce localized incentives and infrastructure improvements to support EV uptake.
Post time: Jan-18-2025
