Global EV sales increased by 31% in 2023

The global sales of fully electric and plug-in hybrid vehicles (PHEVs) increased 31% in 2023, according to market research firm Rho Motion. The growth was reported to be 60% back in 2022.

"The pace of growth is slowing, but that's what's expected in growing markets like this," Rho Motion data manager Charles Lester told Reuters. "You can't double every year." Lester said global EV sales last year were largely in line with the 30% growth Rho Motion had forecast. For 2024, the firm forecasts global EV sales growth of between 25% and 30%.

Sales in December hit a monthly record of 1.5 million units, Rho Motion said. Fully electric or battery electric vehicles (BEVs) accounted for 9.5 million out of the 13.6 million EVs sold around the world in 2023, with PHEVs accounting for the rest.

After years of accelerating growth, some automakers fear electric car sales in Europe and elsewhere could be heading for slowing demand as drivers wait for better, smaller and cheaper models that are two to three years down the road.

BEV sales jumped 50% in the U.S. and Canada, and grew 27% and 15% in Europe and China respectively. Sales in Europe in 2024 could be affected by Germany's abrupt decision last year to drop EV subsidies, Lester said.

Rho Motion said only 8% of Europe's BEV sales were in the smaller car segment, though that should start to change with the arrival of smaller models like the Citroen eC3 from Stellantis that is due to go on sale this year.