China Dominates Worldwide EV Sales in January

China dominated global sales of fully electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) making up more than half of the 1.3 million cars sold. Overall, 18% more EVs sold compared to January 2024.

China Dominates

• China: 700,000 units sold, a 12% year-over-year increase.
• Europe: 250,000 units sold, up 21% from the same month in 2024.
• United States and Canada: 130,000 units sold, representing a 22% year-over-year rise.

Europe and US Lead in Sales Growth

Notably, for the first time since February of the previous year, growth in Europe and the United States outpaced that of China. This shift is partly attributed to the introduction of CO₂ emission targets in the European Union, which bolstered EV sales, while the Chinese market experienced a seasonal slowdown due to the Lunar New Year holidays.

Global Sales Down from December but Strong Sales Projected Going Forward

Despite the positive year-over-year growth, January’s global EV sales were down by over a third compared to December 2024, reflecting typical seasonal trends.

Looking ahead, research firm Rho Motion projects that global sales of fully electric and plug-in hybrid vehicles will rise by at least 17–18% in 2025, pushing annual totals beyond the 20 million-unit mark.

THE TAKEAWAY

China made up 54% of global EV sales in January and any slowdown is likely to be temporary as the government continues to offer huge subsidies for buyers. BYD, the Chinese manufacturer of cheap electric cars, has been a huge beneficiary, recently passing Tesla in total cars sold in calendar 2024.

Sources: EV Car Answers Editors, ChatGPT, Reuters, BYD