Research firm Rho Motion reported on Jan 14 that global sales of electric vehicles (EV) and plug-in hybrid vehicles (PHEV) hit record 17.1 million units in 2024, a 25% increase compared to the previous year. A 40% leap in China sales, driving 11 million units, offset declines in Europe.
As BYD (BYDDF, Financial) sells over 40 models, it was able to attribute China’s growth to strong government incentives and the broad product range on offer. PHEVs more than drove the growth, increasing 81 and BEVs grew 19%. Nearly 480,000 Model Y units were sold by Tesla’s (TSLA, Financial) Model Y, which was the best selling car in China. Per strong demand, the Model Y sold 50,000 on its launch day.
Sales of electric vehicles in North America continued a steady pace, rising 9 percent to 1.8 million units in the U.S. and Canada. Regional disparities saw Europe fall by 3%, in contrast to Asia’s 37% rise in EV sales. Germany was also lower with 400,000 units sold but the U.K. grew as the hardware sold in 400,000 units.
Tesla and BYD have led the way in China across the board, with Volkswagen (VWAGY, Financial) and General Motors (GM, Financial) struggling to make headway. In the U.S., discussions around Federal EV tax credit can be risky for future growth, with Europe’s market also unclear.
While headwinds continue to challenge growth, 2024 set another milestone for global EV adoption, revealing the competitive dynamics of a transformed auto industry.
This article first appeared on GuruFocus.
