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 5,9% 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. European automakers 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, stabilisation 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.
Challenges and Regional Market Trends EV Sales 2024
Despite these achievements, challenges persist. The removal of subsidies in markets like Germany had a noticeable impact on sales, signalling potential risks if similar policies are enacted in other regions. The high cost of raw materials, particularly lithium, and geopolitical uncertainties surrounding trade policies may also influence market dynamics.
Future Outlook EV Sales 2025
Looking ahead, 2025 is poised to be another transformative year for the EV / Automotive industry. Europe’s new emissions regulations and the continuation of China’s trade-in scheme will be critical drivers. However, potential changes in U.S. EV policy under the Trump administration could introduce uncertainty in North America.
As automakers invest heavily in research and development, expect to see continued advancements in battery efficiency and vehicle automation. Increased collaboration between governments and private sectors will likely accelerate the development of charging networks, further boosting consumer confidence. We keep you posted!
Source: Rho Motion and Reuters
