October 15, 2024 | India
Global EV sales of fully electric (BEV) and plug-in hybrid vehicles (PHEV) saw a remarkable rise of 30.5% in September 2024, according to market research firm Rho Motion. This significant growth was driven by record-breaking numbers in China and a rebound in Europe, marking a strong upward trend in the electric vehicle (EV) sector.
China Leads the Way in Global EV Growth
China, the world’s largest EV market, witnessed a 47.9% increase in sales during September, reaching 1.12 million units. This growth surpassed the record set in August and solidified China’s position as a global leader in electric mobility. According to Charles Lester, data manager at Rho Motion, the penetration of BEV and PHEV in the Chinese market is accelerating at a faster rate than expected. Lester predicts, “Sales could set a new record every month until the end of the year.”
Steady but Slower Gains in the US and Canada
In North America, EV sales grew steadily but at a slower pace. The United States and Canada saw a 4.3% increase, with 0.15 million vehicles sold in September. While these gains are modest compared to China’s surge, the North American market continues to evolve as anticipation builds for the upcoming November 5 election. Lester noted, “It’s challenging to predict future trends due to political uncertainty in the US.”
Europe Resumes Growth, Led by the UK
Europe’s EV market showed signs of recovery, growing by 4.2% to 0.3 million units in September. The United Kingdom led this resurgence with a 24% jump in sales, followed by positive gains in Italy, Germany, and Denmark. While Europe’s overall growth was more tempered, it indicates a renewed interest in electric mobility.
According to Lester, Germany’s 7% year-on-year growth is a positive development. However, the EU’s upcoming carbon emission reduction targets for next year will test the market’s ability to meet these goals.
Long-Term Projections for EV Sales in Europe
Despite the positive results in September, Rho Motion has adjusted its long-term forecasts for EV sales in Europe. The firm now expects the market to reach 3.78 million vehicles by 2025 and 9.78 million by 2030, both lower than previous estimates by 24% and 19% respectively. This revised outlook reflects the challenges posed by cooling global demand and regional policy changes.
Impact of Policy Changes in Europe
Policy shifts in Europe are playing a crucial role in the EV market’s growth trajectory. France recently announced plans to scale back its support for EV buyers, while Germany introduced tax relief for companies on their EV sales after ending a subsidy program aimed at accelerating the green transition.
Conclusion
The global EV market continues to expand, with September 2024 seeing significant gains driven by China and a rebound in Europe. While North America’s growth remains steady, political factors could influence future trends. As automakers and policymakers push for cleaner transportation solutions, the EV sector is set for continued growth, albeit with regional variations in pace and strategy.
