Strong electric vehicle (EV) sales in Europe and North America helped drive global EV sales up 18% year-on-year in January, despite softer growth in China, according to EV research firm Rho Motion.
A total of 1.3 million EVs were sold worldwide in January, marking a significant increase from the same period in 2024. However, sales dropped 35% from December, a seasonal decline largely driven by the Chinese New Year effect.
Europe and North America Lead the Charge
In Europe, including the EU, European Free Trade Association (EFTA), and the UK, EV sales jumped 21% year-on-year to 250,000 units. Similarly, the US and Canada saw a 22% increase, with sales reaching 130,000 vehicles.
The European market’s strong start to 2025 comes as new emissions standards take effect, pushing automakers to accelerate EV production to avoid regulatory penalties.
China’s EV Market Slows, But Seasonal Trends Play a Role
China, the world’s largest EV market, experienced softer growth, with EV sales rising just 12% in January 2025 compared to the previous year. However, analysts attribute this slowdown to seasonal factors, as the Chinese New Year typically results in weaker vehicle sales in January and February.
Rho Motion expects Chinese EV sales to remain sluggish in February due to the holiday period, before rebounding later in the year.
Charles Lester, Data Manager at Rho Motion, commented on the trend:
“With emission standards coming into force for European manufacturers this year, all eyes are on the opening month for the region, which shows encouraging growth at 21% compared to the same time last year.
The Chinese market, as expected, shrunk 43% from the previous month as drivers tend to go all in at the end of the year before the Chinese New Year public holidays fall in January and February.
The US and Canada market hasn’t yet been impacted by the new occupant of the White House and is showing a consistent year-on-year increase of 22%. 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.”
Europe’s EV Sales Bolstered by New Regulations
The EU’s EV market remains robust, despite higher tariffs on Chinese EVs introduced last year over concerns of unfair government subsidies. The tariffs target battery electric vehicles (BEVs), prompting many Chinese manufacturers to shift focus to hybrid vehicles to maintain their foothold in Europe.
Among individual markets, Germany recorded a 40% increase in EV sales in January. In contrast, French EV sales fell 15%, following the introduction of a new weight tax on plug-in hybrid electric vehicles (PHEVs). This led many consumers to purchase PHEVs in December 2024 to avoid the tax, causing a decline in January sales.
Looking Ahead: EV Market Faces Policy Shifts and Trade Uncertainty
While January’s figures reflect steady global EV adoption, analysts caution that trade policies, emissions regulations, and government incentives will play a crucial role in shaping the market in 2025.
With Europe tightening emission rules, China adjusting to seasonal slowdowns, and North America awaiting potential policy shifts, the EV sector is set for an eventful year ahead.
