Global sales of fully electric and plug-in hybrid vehicles surged by 25.6% in 2024, reaching over 17 million units. December marked a fourth consecutive month of record-breaking sales, with growth driven by incentives, emissions targets, and regional market dynamics.

Key Market Highlights

1. China Leads the Charge

   • Sales in China grew by 36.5% in December to 1.3 million vehicles, bringing total sales for the year to 11 million.
   • This accounts for nearly two-thirds of global EV sales, solidifying China's position as the dominant market.

2. Europe's Stabilization

   • Europe recorded sales of 0.31 million vehicles in December, reflecting a modest year-over-year growth of 0.7%.
   • The UK surpassed Germany to become Europe's largest battery-electric vehicle market in 2024, aided by policy incentives and stricter emissions regulations.

3. North America Slows

   • EV sales in the United States and Canada rose by 8.8% in December, totaling 0.19 million vehicles.
   • Analysts cite policy uncertainty under the incoming Trump administration as a potential headwind for 2025.

4. Global Context

   • Outside major markets, EV sales grew by 26.4%, showcasing increasing adoption across emerging markets.

Outlook for 2025

The year 2025 is poised to be a critical one for the EV industry due to:

• Potential Policy Changes: Shifts in U.S. government priorities under new leadership could impact incentives.
• New Emission Standards in Europe: Stricter regulations are expected to drive innovation but could strain supply chains.
• Slower Growth in China: Following years of rapid expansion, sales in China may plateau due to market saturation.

Related Insights

To analyze sector performance and long-term trends in the EV industry:

• Explore the Sector P/E Ratio API for valuation insights.
• Understand historical performance with the Sector Historical Overview API.