The sales of pure electric (EV) and plug-in hybrid electric vehicles (PHEVs) have notably declined, dropping by 26% compared to December 2023 despite a 69% annual growth. The global EV market has become a hot topic of discussion due to slowing demand worldwide. A year ago, many brands were heavily investing in EV factories to meet the surging demand, but now they seem to have shifted direction, slowing down the once-booming EV business. January's sales report reveals significant growth compared to last year but a decline compared to December 2023.

According to the latest data from Rho Motion, although specific data for EVs and PHEVs are not available, a total of approximately 1.1 million EVs and PHEVs were sold in 2024, marking a remarkable 69% increase from January 2023's 660,000 units. However, it's crucial to consider that last year's production capacity was insufficient to meet market demand, so sales performance couldn't accurately reflect market conditions. In the past six months, vehicle supply has returned to normal, making the comparison with the previous month's sales more accurate, revealing a 26% decline compared to December 2023.

The decline is evident not only compared to last December but also when compared to 2023 data. Sales from June to December were better than January's, indicating a clear decline. Additionally, many European regions have announced the cessation of EV subsidies, contributing to decreased sales. Experts believe this is a short-term phenomenon, especially as the EU plans stricter emissions standards, likely stimulating EV and PHEV sales. However, the recent relaxation of EU regulations may diminish the impact on EV sales.

Furthermore, the report compares sales volumes in various regions. The US and Canada saw a 41% increase compared to January last year but a 14% decrease compared to December. The EU, including the UK, experienced a 29% growth from January last year but a 32% decrease from December. The Chinese market almost doubled compared to January last year but declined by 26% compared to December. This trend suggests a global phenomenon, although Rho Motion didn't publish specific EV data, indicating potentially worse performance. Whether EVs have reached a bottleneck or will experience another surge after consolidation remains uncertain, with clearer answers expected in the mid-year.

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