Global EV sales up 18% in January-but speed bumps lie ahead

February 12, 2025February 12, 2025 Shivansh 0 Comments

The electric vehicle (EV) market kicked off 2025 with a strong showing, even as EV sales dipped from December’s record-breaking numbers. According to data from London-based Rho Motion, 1.3 million EVs were sold worldwide in January 2025. While that’s a 35% drop from December, it still marks an 18% increase compared to January 2024—a clear sign that EV adoption continues to grow at a steady pace.

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Breaking Down the Global EV Sales

January is often a slower month for car sales globally, and EVs were no exception. However, the numbers still paint a positive picture:

Worldwide Sales: 1.3 million EVs (+18% year-over-year, -35% month-over-month)
China: 0.7 million (+12% YoY, -43% MoM)
Europe (EU, EFTA & UK): 0.25 million (+21% YoY, -19% MoM)
U.S. & Canada: 0.13 million (+22% YoY, -28% MoM)
Rest of the World: 0.13 million (+50% YoY, -4% MoM)

While some regions experienced a natural post-holiday dip, others showed promising year-over-year growth, setting the stage for another strong year in the EV industry.

A Strong Start in Europe

European EV sales rose 21% year-over-year, with over 250,000 EVs sold in January 2025. This is an important milestone for automakers, as they need to maintain strong sales figures to comply with the new 2025 emission standards that impose strict penalties on high-emission vehicles.

Key Takeaways:

Germany is leading the charge with EV sales growing over 40% YoY, and battery electric vehicle (BEV) sales jumping 50%.
France saw a decline, with EV sales dropping 52% compared to December and 15% YoY, largely due to a new weight tax on plug-in hybrids (PHEVs) that took effect in January. Many buyers rushed to purchase vehicles before the new regulations kicked in, causing an expected slowdown in January.

A Predictable Drop, But Still Growing in China

China, the world’s largest EV market, recorded 700,000 EV sales in January, a 12% increase YoY. However, sales declined by 43% compared to December, which is a common trend due to the Chinese New Year holiday season.

What’s Driving China’s EV Market?

The Chinese government’s national car trade-in scheme continues to support EV adoption.
The New Year holiday slows vehicle sales every January and February, so another weak month is expected before sales rebound in March.
Domestic brands like BYD and Nio remain dominant, expanding their market share as competition intensifies.

North America: Steady Growth, But Uncertainty Looms

The U.S. and Canada reported 130,000 EV sales in January 2025, reflecting a 22% increase YoY but a 28% drop from December’s peak.

Key Factors Impacting North American EV Sales:

Federal EV tax credits of up to $7,500 are still available for many battery electric vehicles (BEVs) and select plug-in hybrids (PHEVs).
Tougher tax credit requirements in 2025: The U.S. has implemented stricter sourcing rules for EV battery materials, which caused some models to lose eligibility for incentives.
Political uncertainty surrounding Trump’s return to the White House has raised concerns about the long-term stability of EV policies in the U.S.

Despite the January slowdown, the long-term outlook for EVs remains positive. Several factors will shape the market in the coming months:

Stronger incentives and regulations in Europe will push automakers to ramp up production and sales.
China’s post-holiday rebound should help global sales recover by March.
North America’s policy landscape remains a wildcard, but consumer demand continues to rise.
New EV models and improved technology will likely drive sales upward throughout 2025.

January 2025 may have seen a dip compared to December, but the year-over-year growth proves that EV adoption is not slowing down. As the world transitions toward cleaner transportation, expect more innovation, better incentives, and increased competition to drive EV sales higher in the months ahead.

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