According to research firm Rho Motion, the extension of China’s auto trade-in incentives is expected to help boost global sales of fully electric and plug-in hybrid vehicles by at least 17% this year, reaching over 20 million vehicles.
As CO2 emission standards are implemented and more affordable models become available, Europe, the second-largest EV market in the world, will resume growing its sales, albeit at a slower rate than in 2023, according to Iola Hughes, Head of Research at Rho Motion.
Automakers see 2025 as a pivotal year as China offers subsidies and Europe sets new goals to promote EV adoption, while the United States reverses its electrification goals under President Donald Trump’s administration.
According to Rho Motion, the extension of subsidies is expected to increase EV sales in China by more than the prior prediction of 17% growth in 2025 and strengthen its market domination. They increased by a record 40% to 11 million in 2024.
According to the firm, sales of EVs manufactured in China will support 2024 trends in Latin America, where they achieved a market share of more than 80%, and will keep growing in emerging countries and the Asia-Pacific area.
Compared to the 3 million EVs sold in Europe last year, it predicts a 15% increase in total sales. Despite purchasing credits from EV manufacturers through pools, automakers still face fines of about 10 billion euros ($10.51 billion) for failing to meet EU pollution targets, the report stated.
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