Global electric vehicle (EV) sales are expected to increase beyond 20 million in 2025, according to a leading British research firm.
Rho Motion analysts predict EV sales will grow by 18 percent this year, boosting the total number of global deliveries to over 20 million.
Chinese brands are set to account for nearly two-thirds of all EV deliveries worldwide, with sales expected to reach 12.9 million – a spike of 17 percent compared to last year.
Supply factors will play a significant role in the expansion of China’s EV footprint – BYD and GWM are set to open new production facilities in Brazil this year, while the former is also opening a factory in Hungary.
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According to Rho Motion, the renewal of China’s EV trade-in subsidy has positive implications for short-term demand, entitling EV owners to a subsidy of up to $4424 when they swap their current vehicle for a new electric car.
Sales are also expected to rise across Europe, the UK, Canada and even the US, despite Donald Trump becoming President for the second time.
EVs were a major target during President Trump’s election campaign, and one of his first moves will be to axe the federal tax credit for EVs, worth up to US$7500 (A$11,625).
In his first day in his second term as US President, Mr Trump rescinded a non-binding agreement for half of US new automobile sales to be of EVs by 2030.
Nevertheless, EV demand is unlikely to soften in the short term according to Rho Motion head of research, Lola Hughes.
“Following his inauguration, President Donald Trump’s legislative agenda is in full swing and though the removal of EV tax credits is going to impact the long-term market, little change will be seen this year as the electrification of vehicles is here to stay,” said Ms Hughes.
Steady growth increases have been forecasted for the EU, EFTA (European Free Trade Association) and the UK come after EV sales growth dipped to 13 percent in 2024.
Rho Motion attributes its prediction of rebounding sales to new emissions standards taking effect, and the introduction of more affordable models into the market.
Australia’s EV market grew by 4.7 per cent to 91,292 sales in 2024, accounting for about 7.4 per cent of overall new vehicle deliveries.
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