Market research firm Rho Motion has revealed that global electric vehicle (EV) sales, encompassing fully electric and plug-in hybrid vehicles (PHEVs), experienced a noteworthy annual growth of 31% in 2023. While this growth rate represents a deceleration from the previous year’s 60%, it aligns with expectations for maturing markets, according to Rho Motion data manager Charles Lester.
Growth Trends and Forecasts
Lester emphasized the natural slowing of growth in expanding markets, stating, “You can’t double every year.” The data manager indicated that the 31% growth in worldwide EV sales for 2023 closely matched Rho Motion’s forecast of 30%. Looking ahead to 2024, the firm anticipates continued growth, forecasting global EV sales to increase by 25% to 30%.
December Milestone
Notably, December 2023 marked a milestone for global EV sales, reaching a monthly record of 1.5 million units, as reported by Rho Motion.
EV Segments Overview
Out of the 13.6 million EVs sold worldwide in 2023, fully electric or battery electric vehicles (BEVs) accounted for 9.5 million units, with PHEVs constituting the remaining portion. The data suggests a shifting preference towards BEVs, reflecting a global trend.
Regional Variances in BEV Sales
Breakdowns of BEV sales growth indicate a surge of 50% in the United States and Canada, while Europe and China experienced growth rates of 27% and 15%, respectively. Concerns have arisen about potential slowing demand in Europe, attributed to drivers holding off purchases in anticipation of upcoming models that are expected to be better, smaller, and more affordable.
Impact of Subsidy Changes
Lester highlighted the potential impact on EV sales in Europe for 2024, noting Germany’s abrupt decision to discontinue EV subsidies in the previous year. Despite challenges, the market is expected to see a shift, particularly in the smaller car segment, with the introduction of new models like the Citroen eC3 from Stellantis, set to be available for sale this year.
