Global EV Sales See 18% Growth in January 2025 but What Comes Next

• Global EV sales grew 18% in January 2025 compared to January 2024, reaching 1.3 million units.
• China saw a 12% year-over-year increase but a 43% drop from December due to seasonal buying patterns.
• North America’s EV sales rose 22% year-over-year, but fewer models qualify for tax credits in 2025.

Global EV sales are off to an 18% climb in 2025 compared to last year. That is what Rho Motion’s latest data reveals, but the numbers tell a more complicated story.

In January alone, 1.3 million electric vehicles found new owners worldwide. That sounds like a win, until you compare it to December 2024, where sales were down by over a third.

A predictable post-holiday slump? Maybe. But with new policies taking effect, regional markets are responding in ways that could significantly impact the year ahead.

EV Sales Surge in Europe While China and France Decline, A Breakdown of the Numbers

Let’s get into the specifics. The European market, pressured by stricter emission standards, saw a 21% increase compared to the same time last year. Germany stood out with over 40% growth in EV sales and a 50% rise in BEVs.

Not all countries followed suit, though. France, hit by the introduction of a weight tax on PHEVs, saw a 52% drop month-over-month and a 15% decline compared to January 2024.

Manufacturers pushed pre-sales in December before the tax kicked in, so January’s numbers reflect the expected dip.

China remains the heavyweight in global EV adoption, responsible for more than half of all sales in January. Compared to the same period last year, the country saw a 12% increase. However, sales plummeted 43% from December. No surprises there.

“Drivers tend to go all in at the end of the year before the Chinese New Year public holidays fall in January and February, Charles Lester, Rho Motion Data Manager, stated. With an extended national car trade-in scheme still active, momentum is expected to build again once the holiday period passes.

North America is holding steady. The U.S. and Canada reported a 22% increase in year-over-year EV sales, reaching 130,000 units in January. But that is down 28% from December. Federal tax credits remain a key factor, with buyers still benefiting from incentives up to $7,500 for many BEVs and a single PHEV.

The catch? Battery sourcing requirements tightened in 2025, cutting several models from eligibility. That could slow growth in the coming months as fewer options qualify.

Meanwhile, smaller markets outside these regions are making big gains. EV sales in the rest of the world jumped 50% year-over-year, though only 4% lower than December. While the total volume is much smaller, the growth rate suggests more countries are getting serious about EV adoption.

EV Sales Surge, but Policy Shifts Bring Uncertainty

Rho Motion’s Charles Lester kept his analysis straightforward. “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,” he noted.

He also pointed to the Chinese market’s expected drop due to seasonal buying patterns. While the U.S. and Canada are still growing, and for now, “hasn’t yet been impacted by the new occupant of the White House.” But that could change quickly depending on policy shifts.

The EV industry is rolling into 2025 with momentum, but headwinds are on the horizon. Europe has no choice but to push harder on compliance, while China will likely rebound post-holiday. The North American market, however, faces uncertainty. Fewer eligible vehicles for tax credits could slow adoption, even as EV sales continue their upward trajectory.

For EV buyers, it means paying closer attention to available incentives and shifting market trends. Those looking for EV cars for sale may find a shrinking pool of tax-credit-eligible models in North America. Meanwhile, used EVs for sale are growing in appeal as newer models lose incentives. The bottom line? The market is growing, but the path forward is anything but predictable.

IMAGES: RHO MOTION, ELECTRIFY EXPO

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