According to the firm's data, a record 17.1 million battery electric vehicles (excluding plug-in hybrids) were sold worldwide last year.
China solidified its position as the leading market for electric cars, with 11 million units sold, marking a 40 percent rise compared to 2023.
In Europe, which includes Britain, Iceland, Norway, and Switzerland, sales declined by three percent to three million vehicles after four consecutive years of robust growth. In a generally contracting market, hybrids captured the largest share, displacing petrol and diesel vehicles.
The cessation of state financial incentives for consumers negatively impacted sales in Germany last year, while the UK saw a 21.4 percent increase, making it Europe’s largest market for electric vehicles, partly due to sales targets set for manufacturers.
Sales of electric vehicles also grew in the United States and Canada, rising nine percent to reach 1.8 million units.
Rho Motion highlighted that government policies, or the lack thereof, significantly influence sales trends, as electric vehicles continue to be substantially more expensive.
“What is clear is that government carrots and sticks are working,” said Rho Motion data manager Charles Lester in a statement.
He indicated that the plans by president-elect Donald Trump to eliminate sales incentives would likely affect electric vehicle sales in the United States by 2025.
In Europe, stricter emissions regulations could potentially boost electric vehicle sales in the same year.
Another analyst from Rho Motion, William Roberts, noted that European governments are not focusing on incentives for electric vehicles, and new models still face significant tariffs.
The imposition of European tariffs may impede the importation of Chinese electric vehicles from manufacturers like BYD and SAIC (MG Motor). However, with Leapmotor's planned European production at a Stellantis facility and BYD's European factory establishment, analysts predict sustained market share growth for Chinese automakers.