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Global EV Sales Plummet Amidst Shifting Policies
13 Feb
Summary
- Global EV registrations declined 3% in January to 1.2 million units.
- China saw a 20% drop in EV sales, hitting a near two-year low.
- Europe's EV sales grew by 24%, but at a decelerating rate.
Global electric vehicle (EV) registrations experienced a 3% decline in January, reaching approximately 1.2 million units. This decrease marks a significant shift from previous growth trends, influenced by policy adjustments in key markets.
China, the world's largest EV market, saw registrations drop by 20%, marking the lowest figure in nearly two years. In North America, sales fell by 33%, with the United States registering its lowest EV sales since early 2022. These declines are attributed to the introduction of purchase taxes and reduced subsidies in China, alongside policy changes in the U.S.
Conversely, Europe recorded a 24% increase in EV sales, though this represented the slowest growth rate in a year. The rest of the world experienced a record 92% surge in EV registrations, driven by incentives in Thailand and robust growth in South Korea and Brazil.
Carmakers with substantial exposure to the U.S. market have recently revised their EV strategies, booking significant financial write-downs. This recalibration reflects the challenging market conditions, including price wars in China and a more diverse vehicle mix in Europe. Despite these headwinds, exports from China are projected to increase, targeting various regions globally.
