Last year, there was a lot of talk about declining electric vehicle (EV) sales, lower-than-expected adoption and various challenges in the e-mobility market. Many manufacturers even scaled back their ambitious electrification plans. But looking back, things weren't as bad as predicted. In fact, it turned out pretty well!
Data shows that global sales of EVs and plug-in hybrid electric vehicles hit a record high in 2024, thanks to booming growth in China and other regions, which offset the weaker performance in Europe.
According to Rho Motion, global electrified vehicle sales surged 25%, reaching a total of 17.1 million units. While the growth rate slowed compared to the 35% year-over-year increase in 2023, the numbers are still impressive. And this was despite Tesla TSLA— the world’s largest EV maker— witnessing its first ever annual decline in sales volumes.
China Leads 2024 EV Sales Growth
The country's EV market saw a 40% increase in sales, with 11 million units sold. This success can be attributed to various factors, including government incentives, trade-in programs, and impressive product offerings from domestic manufacturers like BYD Co Ltd. BYDDY. BYD's ability to offer more than 40 models helped boost sales in China. BYD is now a key player in the global EV race.
In the fourth quarter of 2024, BYD delivered approximately 595,000 all-electric vehicles worldwide, significantly outpacing Tesla’s deliveries of just under 496,000 EVs.
Tesla did manage to hold onto its lead in full-year deliveries for 2024. However, the company is facing increased competition in China. Per China EV DataTracker, TSLA’s Model Y was the top-selling car in the country in 2024, selling more than 480,000 units. Tesla recently unveiled a redesigned Model Y in China, which features a refreshed exterior and enhanced interior, with an intent to regain market share from competitors like Xiaomi. The model received 50,000 preorders on its first day.
Despite this success, the market is becoming more competitive, with local brands like BYD taking a larger slice of the pie. China EV companies, NIO, XPeng and Li Auto, registered more than 30% year-over-year growth in deliveries for full-year 2024.
Europe EV Sales: A Mixed Bag
Europe, on the other hand, faced a more mixed situation in 2024. While overall EV sales across the continent exceeded 3 million units, the region experienced a 3% decline compared to 2023. A major contributing factor to this downturn was the removal of subsidies in key markets, especially Germany. Germany’s government had been a strong supporter of EV adoption, but as incentives were scaled back, sales took a hit.
However, Europe was not without its success stories. The United Kingdom saw a nearly 20% increase in EV sales, thanks in part to the introduction of the Zero Emission Vehicle mandate. This policy required automakers to push low-emission vehicles, leading to higher sales in the UK. Norway, too, continued to be a shining example, with over 90% of passenger vehicle sales in the country being EVs by the end of the year.
North America Witnesses Steady Growth
In North America, the EV market experienced a solid 9% growth in 2024, with the United States and Canada collectively selling 1.8 million EVs. Despite challenges such as Tesla's first-ever annual decline in sales, it continued to dominate with a 50% market share. Consumer subsidies and investments in EV infrastructure played a key role in driving this growth. U.S. EV sales in 2024 totaled 1.3 million units, up more than 7% on a year-over-year basis.
Legacy automakers like General Motors GM and Ford F secured second and third spots, respectively, in U.S. BEV sales in 2024.For the full year, GM’s EV sales reached approximately 114,000, representing a 50% increase from 2023. Ford sold 97,865 all-electric vehicles in 2024, a 35% year-over-year increase.
Looking Ahead to 2025
In the United States, one in four vehicles sold in 2025 is projected to be electrified, with pure electric cars accounting for about 10% of total sales, per Cox Automotive. This growth will be fueled by increased consumer interest, the widening variety of EV models, and growing awareness of sustainability. However, political and policy shifts could introduce uncertainty. With Donald Trump set to resume presidency next week, there are concerns about potential rollbacks of EV tax credits and emissions standards. If these supportive policies are reversed, it could dampen the EV market's momentum in the country.
In China, sales of EVs and plug-in hybrids are expected to rise by around 24% in 2025, per China Association of Automobile Manufacturers. China's commitment to clean energy transitions and government support for e-mobility will continue to solidify its position as a global leader in EV adoption.
Europe’s EV market is set to bounce back in 2025. EV volumes are predicted to return to growth as the region overcomes its recent stagnation. Key to this recovery is the EU’s "Fit for 55" initiative, which continues to support the shift to sustainable mobility. With this policy framework in place, Europe is well-positioned to accelerate EV adoption.
Gas-Powered Cars Losing Popularity
One important trend often overlooked is the long-term decline of gasoline-powered car sales. Global sales of gas cars peaked in 2017 and have been steadily declining ever since. In the United States, sales of internal combustion engine vehicles are expected to drop to 75% of total volume, the lowest level on record, in 2025. So, compared with the ongoing decline in gas car sales, the growth in EV sales looks even more impressive.
Last Word
As consumer demand continues to grow and government incentives play a crucial role, the global EV market in 2025 is expected to stay strong. But the market's success will depend on continued support from policymakers and the ability of automakers to meet the growing demand for EVs. With gasoline car sales in long-term decline, the transition to EVs is not just a trend—it’s becoming the new norm.
Free Today: Profiting from The Future’s Brightest Energy Source
The demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.
Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.
Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
