Global Sales of EVs to Achieve 25-30% Growth in 2024: Rho Motion

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Market research firm Rho Motion reports that global sales of fully electric and plug-in hybrid vehicles (PHEVs) witnessed a 31 percent increase in 2023, marking a notable slowdown from the 60 percent growth observed in the previous year.

Charles Lester, data manager at Rho Motion, highlighted that the deceleration in growth aligns with expectations for expanding markets, stating, “You can’t double every year.”

Lester noted that global electric vehicle (EV) sales in 2023 closely followed Rho Motion’s forecast of 30 percent growth. Looking ahead to 2024, the research firm anticipates global EV sales growth within the range of 25 percent to 30 percent.

In December 2023, EV sales reached a monthly record of 1.5 million units, according to Rho Motion.

Out of the 13.6 million EVs sold worldwide in 2023, fully electric or battery electric vehicles (BEVs) constituted 9.5 million, while PHEVs made up the remaining portion.

Despite years of robust growth, some automakers express concerns about potential slowing demand for electric cars in Europe and other regions. This cautious sentiment arises as drivers await improved, more compact, and affordable models expected to be available in the next two to three years.

BEV sales experienced a 50 percent surge in the U.S. and Canada, with growth of 27 percent and 15 percent in Europe and China, respectively.

The abrupt decision by Germany to discontinue EV subsidies in the previous year may impact EV sales in Europe in 2024, according to Lester. Rho Motion highlighted that only 8 percent of Europe’s BEV sales fell into the smaller car segment. However, the introduction of smaller models, such as the Citroen eC3 from Stellantis, set to go on sale this year, is expected to contribute to a shift in this trend.