Automobile: Sales of electric cars increased by 25% in 2024

Sales of electric cars increased by 25% worldwide in 2024, with a clear increase in China but an initial slowdown in Europe, according to figures published Tuesday by the Rho Motion firm.

17.1 million battery cars (excluding plug-in hybrids) were sold over the year, setting a new record, according to registration figures collected by this British firm. China, the world pioneer of electric cars, continues to lead the market with 11 million vehicles sold (+40% over one year).

In Europe (including UK, Switzerland, Norway and Iceland), after four years of strong growth, sales of electric models fell slightly for the first time, to 3 million units (-3%). In a very slow European automobile market, hybrid models have taken large market shares while gasoline and diesel models have declined.

“The carrot and the stick work”

Sales of electric models were particularly penalized by the removal of purchasing aid in Germany, while they increased in the United Kingdom (+21.4%), which has become the leading electric market in the region, notably thanks to to the establishment of sales objectives for manufacturers.

The market also grew significantly in the United States and Canada with 1.8 million cars sold (+9%). Both upward and downward, these developments are largely due to government measures, such as investment aid for businesses.

Scrappage bonuses and purchase bonuses are also essential while electric models remain generally more expensive than their hybrid or gasoline equivalents.

“The carrot and the stick work,” Rho Motion analyst Charles Lester told AFP. In this context, the elimination announced by US President-elect Donald Trump of purchasing aid will “certainly” have an effect on electric sales in 2025 in the United States, he underlined.

Crucial year in Europe

Europe is set to experience a crucial year with the entry into force of tougher CO₂ emissions standards, which could boost the electricity market.

However, European governments have not placed incentive schemes “at the top of their list” and, at the same time, manufacturers’ new electric models keep prices high, underlined William Roberts, another Rho Motion analyst.

European taxes supposed to curb imports from Chinese manufacturers like BYD or MG could start to have effects in the first half of 2025, but the arrival of Stellantis’ Chinese brand, Leapmotor, could accelerate their conquest of the market, analysts added.

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