2024 could be celebrated as the year of electric cars, but not without reservations. Despite the global record of 17,1 million electric vehicles sold, with an increase of 25% compared to the previous year, market reality is less uniform than the numbers suggest. On the one hand, the China confirmed his role as undisputed leader with 11 million units sold (+40%), on the other hand Europe struggled, with a 3% drop, while the United Kingdom, thanks to incentive policies, saw a 21,4% surge in sales, becoming the first European market for BEVs.
The cause of this contrasting panorama is to be found in a combination of political and economic factors. While In China, the electricity market continues to grow thanks to support policies and incentives, theEurope faces slowdown caused by the end of incentives, as evidenced by the drop in sales in Germany. Not only that: the increasing competitiveness of plug-in hybrids (Phev), which have gained ground, is further complicating the situation for fully electric vehicles, which risk being overshadowed.
The real problem may lie in the lack of consistent political support. In Europe, where governments are progressively reducing incentives for purchasing electric vehicles, uncertainty is penalizing the market. And while the European duties slow down entry of Chinese cars like those produced by BYD and SAIC, the Penetration of Chinese producers in Europe looks set to grow anyway, thanks to initiatives such as the local production of Leapmotor and the imminent opening of the European plant of BYD.
In short, although the global numbers speak clearly, theEurope stands at a crossroads, struggling between slowing sales and the need for stronger support policies to avoid being left behind in the race towards sustainable mobility.
Europe: Between Slowdowns and Opportunities
In 2024, the European Union, EFTA and the United Kingdom saw a 3% overall decline in electric car sales, stopping at around 3 million units. The end of incentives in Germany slowed down the German market, while the United Kingdom marked a positive exception, with an increase of 21,4%, due to legislative obligations imposed by the “Zev Mandate”. Norway dominates the European scene with a BEV market share of nearly 90%.
Help for the European electricity market could come from Tesla, which, despite the first global sales decline in over a decade, has started the production of the new Model Y at its plant in Grünheide, Germany, with the aim of relaunch its sales in the European and German market where it slipped to third place, overtaken by Volkswagen and BMW.
China: The Engine of the Electric Revolution
La China continued to dictate the law in 2024, with 11 million electric cars sold, a 40% increase compared to the previous year. Sales were driven in particular by plug-in hybrids (PHEVs), which saw an increase of 83%. BEVs, although growing, recorded a more modest increase (+19%).
Byd emerged as the main protagonist, covering approximately a third of the global market with a wide range of models. In 2025, the company will open a new plant in Hungary, a strategic step to overcome the obstacles of European duties and consolidate its position in the European market.
Electric cars: in China, however, the market share is only 30%
A significant fact emerges from the Chinese electric car market. Although sales remain strong, they did not reach the record percentages initially planned. According to official data from the China Association of Automobile Manufacturers (CAAM), the Bev market share (battery electric vehicles) it stopped at 28%, far from the 50% announced by some reports.
On the export front, however, despite an overall increase of 4,5% in vehicle sales, the electric car exports have recorded a significant decline, with a -10,4% compared to 2023, due in part to increasing international competition and protectionist policies adopted by Europe. Chinese car manufacturers will therefore have to devise effective strategies to circumvent the imposed duties.
Looking to the future, the growth looks set to be more moderate, with forecasts pointing to a 5% increase for 2025, mainly fueled by plug-in hybrids, which continue to gain ground.
North America: Moderate Growth
Even in North America, the electric car market has continued to grow, with an increase of 9% in 2024, reaching 1,8 million units sold. Tesla maintains leadership with the Model Y as its best-selling model, but it has to deal with the growing competition of brands such as General Motors, Honda and Hyundai. Even the Cybertruck has gained popularity, surpassing the Ford F-150 Lightning among electric pickups.
The US market, however, could face a slowdown in 2025, due to possible political changes. The Trump administration appears intent on eliminate tax credits for electric vehicles and to review emissions standards. According to Charles Lester Rho Motion, government policies such as incentives and regulations are essential to support an industry that remains characterized by high costs.
Despite these uncertainties, the sales could continue to grow, with a market share expected to reach 10% by 2025, thanks to new models, investments in infrastructure and promotional initiatives by car manufacturers.
