Global EV Sales Went Up 18% In January 2025: Reaching 1.3 Million Units
Strong Performance In Europe And China Boosts Global Growth, While North America Faces Tax Credit Hurdles And Seasonal Declines
Electric vehicle (EV) sales exhibited robust growth in January 2025, with global deliveries reaching 1.3 million units, marking an 18% increase compared to the same period last year. While this conveys a 35% decrease from December 2024’s record-breaking numbers, industry experts view the decline as a typical seasonal pattern rather than a concerning trend.
Strong Growth in European Regions
Regional performance varied significantly across major markets, with Europe and North America showing particularly strong momentum according to Rho Motion. The European market, encompassing the EU, EFTA, and UK, recorded sales of 250,000 units, achieving a 21% year-over-year growth. This strong performance arrives at an essential time as European automakers face new emission standards in 2025, with potential fines for non-compliance.
Germany emerged as a standout performer in Europe, with EV sales surging over 40% compared to January 2024, and battery EVs (BEVs) specifically experiencing more than 50% growth. However, France experienced significant challenges, with sales plummeting 52% month-over-month and 15% year-over-year, primarily due to the introduction of a new weight tax on plug-in hybrid vehicles (PHEVs).
China’s Sales Increase Despite Dip
China saw sales reach 700,000 units, representing a 12% increase year-over-year despite a sharp 43% decline from December. According to Rho Motion data manager Charles Lester, this decrease was anticipated due to the Chinese New Year holidays in January and February, traditionally a slower period for vehicle sales. The market continues to benefit from the government’s extended auto trade-in subsidy program, which was renewed for 2025 as part of broader economic stimulus measures.
North America’s Tax Credit Challenges
In North America, EV sales reached 130,000 units, showing a healthy 22% increase compared to January 2024, although down 28% from December. The market faces some uncertainty with stricter requirements for the federal EV tax credit, which now demands higher percentages of battery materials to be sourced from the United States (U.S.) or its trading partners. While the tax credit of up to $7,500 remains available for many BEVs and one PHEV model, several vehicles have lost their eligibility under the new rules.
Emerging Markets Boost Global Growth
The rest of the world demonstrated remarkable growth, with sales increasing by 50% year-over-year, though experiencing a modest 4% decline from December. This strong performance in emerging markets suggests growing global adoption of EVs beyond traditional leading markets.
Moving forward, industry observers anticipate continued growth but acknowledge potential challenges. “All in all, an uncontroversial start to the year for the EV market globally, though this is not going to remain that way for long,” noted Lester, hinting at upcoming market dynamics that could impact the industry’s trajectory.
The January results reflect the complex interplay of government policies, consumer preferences, and market conditions shaping the global transition to EVs. While seasonal factors and policy changes created some headwinds, the overall trajectory suggests sustained momentum in the shift toward electric mobility across major markets.
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