Market research firm Rho Motion reveals that global sales of fully electric and plug-in hybrid vehicles (PHEVs) exhibited a 31% increase in 2023, signaling a notable slowdown compared to the robust 60% growth observed in 2022. Despite the deceleration, the figures align with expectations for a maturing market. Rho Motion anticipates a continued but moderated growth trajectory, forecasting global electric vehicle (EV) sales to grow between 25% and 30% in 2024.

Monthly records and market distribution

December 2023 marked a milestone, witnessing a record-breaking monthly sales figure of 1.5 million units, as reported by Rho Motion. Within the 13.6 million EVs sold globally in 2023, fully electric or battery electric vehicles (BEVs) constituted a significant portion, accounting for 9.5 million units, while PHEVs contributed to the remaining sales. The robust performance in December indicates sustained consumer interest in electric mobility options.

Regional variances

While the overall growth rate is positive, regional variations are notable. In the United States and Canada, BEV sales experienced an impressive 50% surge. In Europe and China, the growth rates were 27% and 15%, respectively. However, concerns loom over the European market’s trajectory in 2024, potentially influenced by Germany’s unexpected decision to discontinue EV subsidies in the preceding year. Rho Motion highlights the impact of this abrupt policy shift, cautioning that it might influence the sales dynamics in Europe.

Market dynamics in Europe

According to Rho Motion, the smaller car segment accounted for only 8% of Europe’s BEV sales. This trend is expected to evolve with the introduction of smaller models like the Citroen eC3 from Stellantis, scheduled to enter the market in the current year. The availability of compact and affordable EV models is anticipated to stimulate demand in a segment that has traditionally been overshadowed by larger counterparts.

Industry reflections

Charles Lester, data manager at Rho Motion, acknowledges the industry’s recognition of a potential slowdown in Europe and other markets. Amidst years of rapid expansion, some automakers express apprehension about a potential deceleration in electric car sales. This caution stems from consumer anticipation of improved, compact, and cost-effective EV models expected to be available in the next two to three years.

Future projections

As the EV market matures, the growth trajectory is expected to normalize, reflecting the evolution of consumer preferences and market dynamics. Rho Motion’s forecast for 2024 reflects a realistic expectation of sustained yet moderated growth, aligning with the established trend of growing markets.

The 31% growth in global electric vehicle sales in 2023 signifies a maturing market that continues to attract consumer interest. The dynamics of regional variations, evolving market segments, and industry reflections collectively contribute to the narrative of a transitioning and increasingly mainstream electric mobility landscape.