Global EV and PHEV sales rocketed in January, but here’s why analysts are gloomy
Sales of electric vehicles and plug-in hybrids globally leapt by 69 per cent to an incredible 1.1 million deliveries in January 2024 but before EV-makers crack open the champagne analysts have highlighted there could be tough times ahead.
The reason for their pessimism is total sales of electrified vehicles actually fell by an alarming 26 per cent compared to December 2023, with subsidy cuts in both France and Germany as well as a poor performance in China blamed for the fall in demand.
According to Rho Motion, which provided the latest stats, EV sales in Germany and France have fallen by as much as 50 per cent after subsidies were either scrapped or reduced in the European regions.
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Despite the sharp drop-off in the growth of EV sales, analysts still predict that incoming European Union CO2 limits that are due to be implemented in 2025 will see more and more car-makers ramp up their EV and hybrid model offerings, which will in turn boost sales again from today’s levels.
Back in January 2023 just 660,000 EVs and PHEVs were registered globally but since then their popularity in markets like the US and Canada (41 per cent increase) and China, where the number has doubled, has fuelling rapid growth.
While the sales dropped 32 per cent from December 23 to January in Europe and 26 per cent in China, in North America the tailing off of sales was just 14 per cent.
Despite seeing growth in EVs in almost every market, the general slowing of growth has already triggered some car-makers, like General Motors, to rethink its strategy.
Originally GM said it would abandon plug-in hybrids for full EVs in North America but it is now reversing that strategy following the drop in demand and consumer complaints over high EV prices and poor recharging infrastructure.
Even with the growing list of EV bugbears, that isn’t just limited to the US and Canada, it seems electric cars are here to stay with the Tesla Model Y crowned the world’s best-selling vehicle in 2023 with more than 1.23-million delivered in 12 months.
