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Electric Vehicle sales defy global slump owing to China's 47.9% Jump and Europe's 4.2% Growth amidst US's tepid 4.3% increase

Global electric and plug-in hybrid vehicle sales jumped 30.5% in September 2024 owing to record-breaking sales in China and recovery after one brief pause in Europe. This electrifying jump in EV sales was announced by Rho Motion, the market research firm. The global EV sales have seen a strong growth level of 1.69 million units, based on broader concerns over cooling global demand.

Sales in the world's biggest EV market- China, exceeded expectations as well with a 47.9% jump to 1.12 million vehicles. The Chinese market also broke another record, and industry sources continue to believe growth will only pick up this month and going forward. According to Charles Lester, a data manager at Rho Motion, “The penetration rate of BEV and PHEV in China is growing faster than expected.” He further added, “Sales can be a record every month till the end of the year.”

However, Europe's EV market is bouncing back with a 4.2% increase to 300,000 units. The lead for Europe came from the United Kingdom, which rose 24%. Italy, Germany, and Denmark all played parts in the growth displayed in that region. Indeed, Germany was up 7% year-over-year, “definitely positive news” for the EU market, Lester noted.

On the other hand, sales in North America were much slower. While sales in the US and Canada surged by 4.3% reaching 150,000 units. However, the upcoming US elections have injected uncertainty into the US EV market, something that makes sense about the future direction of sales trends. In a statement to Reuters, Charles Lester said, “Gains in the US market have been slow and steady in anticipation of the Nov. 5 election.”

Meanwhile, Chinese carmakers are driving their aggressive push into the European market even further, with significant price disadvantages, including up to 45% import tariffs. The rivalry between Chinese and European automakers took centre stage at the Paris Auto Show on October 14, where both sides showcased their latest electric models. This competition is expected to intensify as Chinese manufacturers seek to gain a larger share of the European EV market.

Moving forward, Rho Motion has adjusted its projections for electric vehicle sales in Europe. Now, the company expects 3.78 million units sold in 2025 and 9.78 million by 2030-cut off earlier projections by 24% and 19%. William Roberts, leading auto research at Rho Motion explained, “Changes in market dynamics and government policies changes are at the top of the list for why such cuts are taking place”.

He added, “Intermediate carbon emission reduction goals set for next year in the EU will test the bloc's market.” Those targets are likely to push automakers to hurry up on the shift toward EV production even as some European governments scale back their support for EV purchases.

France recently announced it would reduce its incentives to promote EV buyers. This comes after Germany recently ruled to exempt companies from paying taxes on the sales of EVs in September following a decision to cancel a subsidy program aimed at hastening the shift to greener energy. All these policies are very likely to affect the speed of adoption of EVs in Europe.

Despite these headwinds, the overall global market remains healthy and still on the growth pathway. With China still leading the charge and Europe regaining momentum, the next few months will be important for determining how the market for electric vehicles will evolve in response to the shifting tides of consumer demand, government policies, and global competition.