The global electric vehicle (EV) market has experienced a varied performance since the start of 2025. Despite seasonal factors and regulatory uncertainty affecting short-term figures, initial data on global EV sales suggests that the industry is poised for further transformation in the coming year.
Reuters, citing graphical data from market research firm Rho Motion, reported on Tuesday that global sales of plug-in hybrid vehicles (hybrid EV) and fully electric vehicles (EV) rose 18% year-over-year (YoY) in January. For the first time since last February, growth in the US and Europe outpaced that of China. Governments worldwide are adopting different strategies to encourage the use of EVs, even as trade tensions and declining auto markets threaten plant closures and job losses. China extended its auto trade-in subsidies into 2025 as a way to stimulate economic growth and maintain EV sales. Meanwhile, Europe initiated further discussions with auto industry stakeholders regarding CO2 emission targets.
Locally, the Malaysian government has implemented a number of initiatives to stimulate the local automotive industry and promote the production and use of electric vehicles (EVs) in the country. These initiatives include full import and excise duty exemptions for imported EVs until the end of 2025, and full import, excise, and sales tax exemptions for locally manufactured EVs until the end of 2027. In January, EV sales in the US and Canada increased by 22.1% to 0.13 million. Plug-in hybrid and fully electric car sales (PHEVs) rose 17.7% from a year earlier to 1.3 million in January, according to Rho Motion data. This marks the third consecutive month of slowing growth.
Sales in China reached 0.7 million vehicles during the month, up 11.8% year over year.
Europe saw sales of 0.25 million, a 21% jump from the same period in 2024. France, a key market in the region, saw a 52% drop due to the introduction of a weight tax on PHEVs. Meanwhile, Germany saw an increase of over 40%, partly attributed to lower figures in January 2024 when EV subsidies were suddenly stopped, the research firm added. EV sales in the US and Canada climbed 22.1% to 0.13 million in January.
The Malaysian EV market is likewise expanding rapidly, with a 20.5% increase in EV registrations in January 2025 compared to 2024. Proton leads the market with its debut EV model, followed by BYD with its Sealion 7, M6, and Atto 3 models. This growth, supported by increasing consumer awareness and infrastructure development, suggests a promising future for EVs in Malaysia.