The global electric vehicle market is charging ahead, with EV sales up 18% year-on-year in January 2025, hitting 1.3 million units.
While numbers dropped 35% from December’s record-breaking high, experts say seasonal trends and shifting policies are shaping the industry’s trajectory.
Europe powers up
The EU, EFTA & UK market saw a 21% increase year-on-year, selling 250,000 EVs in January. With strict 2025 emission standards looming, manufacturers are under pressure to maintain momentum or face hefty fines.
Germany surged with 40% EV growth but France stumbled, dropping 15% year-on-year and 52% month-on-month due to a new weight tax on PHEVs, which triggered a buying spree in late 2024. The growth of public chargers is also having some effect.
China’s expected slump
China remains the biggest EV market, selling 700,000 units in January—a 12% increase from 2024 but down 43% from December. As expected, demand cooled due to the Chinese New Year effect but experts predict a rebound in the coming months.
North America stays steady
The US & Canada saw 22% EV sales growth year-on-year, with 130,000 units sold. Despite fears of policy shifts under Trump’s new administration, the $7,500 Federal Tax Credit remains—but tighter battery material sourcing rules cut some EVs from eligibility, raising concerns about future growth.
