China becomes first country to sell over one million EVs in a month
The record was set in August 2024
In a historic milestone for the global electric vehicle (EV) industry, China has become the first country to sell over one million EVs in a single month, achieving this remarkable feat in August 2024.
According to new data released by Rho Motion, a leading research firm, this achievement eclipses the previous record of 930,000 vehicles set in December 2023 by a substantial margin of 70,000 vehicles.
The surge in Chinese EV sales has contributed to a global total of 9.8 million EVs sold in the first eight months of 2024, marking a 20% increase compared to last year.
While global figures continue to rise, the European market has faced significant challenges. Year-to-date, EV sales have declined 4%, marking the first negative growth in the region.
Six million EVs
In August 2024 alone, China sold 1.03 million electric vehicles, propelling the Asian nation’s total EV sales to six million for the year, a staggering 33% increase compared to the first eight months of 2023.
The numbers indicate a robust growth trajectory, particularly in the realm of Plug-in Hybrid Electric Vehicles (PHEVs), which have seen a remarkable 74% year-on-year increase in sales. PHEVs now account for 42% of all EV sales in China, up from 32% in 2023.
Charles Lester, Data Manager at Rho Motion, expressed optimism regarding China’s EV market: “Surpassing one million EV sales in a month is just the beginning. We anticipate multiple instances of this milestone before the year’s end, especially as sales typically surge in the latter half of the year.”
European headwinds
Contrasting sharply with China’s success, the European market is grappling with headwinds. In August 2024, just over 180,000 EVs were sold across the EU, EFTA, and the UK, resulting in a total of 1.9 million units sold for the year. This reflects a decline of 4% year-on-year, with both Battery Electric Vehicles (BEVs) and PHEVs experiencing downturns of 5% and 3%, respectively.
Germany, in particular, has been struck, with sales plummeting by 23% due to the removal of subsidies last year. However, recent German government proposals to implement tax reductions for companies are seen as a potential lifeline for the market. Despite these challenges, some European markets, including the UK, France, and Portugal, are experiencing positive sales growth.
North America scenario
Meanwhile, the EV market in the United States and Canada continues to thrive, with a 9% growth year-to-date. Several manufacturers are achieving record sales figures. Hyundai has reported significant sales for its Ioniq 5 and Tucson PHEV models, while Kia’s EV9 has also garnered attention as production ramps up. Honda’s Prologue EV, produced in collaboration with General Motors, has sold over 5,000 units.
“The EV market in the US has greatly benefitted from the Inflation Reduction Act (IRA),” noted Will Roberts, Automotive Lead at Rho Motion. “As we approach the US presidential election in November 2024, the outcome could significantly influence the future trajectory of the EV industry, determining whether we continue on a path of electrification or face a slowdown.”
Middle East on a roll
The Middle East’s EV market is also rapidly expanding, with a projected annual growth rate of 27% through 2026. 2022 EV sales reached 14,000 units, a 70% increase from the previous year. Government initiatives, including tax incentives and infrastructure investments, are driving this transformation in the region’s automotive landscape.
The global EV landscape is evolving rapidly, with China at the forefront of this transformation. As manufacturers and consumers embrace EVs, the industry is poised for continued growth. Rho Motion projects that global EV sales will expand further, with China leading the charge and maintaining a significant edge over competing markets.
As the world watches closely, the question remains: can other regions catch up to China’s unprecedented momentum in the electric vehicle sector? Only time will tell as the industry navigates economic challenges and shifts in consumer behaviour.
Featured image: EVs intermingle with ICE vehicles on a busy street in central Beijing on April 25, 2024. Credit: Arnold Pinto
