Global sales of electric and hybrid vehicles climbed 24% in May to 1.6 million units, driven largely by China, which accounted for one million sales both domestically and abroad, according to data from Rho Motion.
The report also noted a more modest month-over-month increase of 8%. Through the first five months of the year, global EV sales surpassed 7 million, with China contributing 4.4 million. The growth was bolstered by the government’s decision to extend a vehicle trade-in policy through 2025 to stimulate consumer spending and economic activity.
“The story this month with global vehicle sales is the continued chasm between Chinese market growth, which saw one million vehicles sold in May, versus the faltering market in North America,” said Charles Lester, data manager at Rho Motion.
Lester added that EV and hybrid sales in Europe remained “healthy,” highlighting the critical role of government incentives in accelerating adoption.
The EV industry faced significant challenges in 2024, as key governments attempted to phase out subsidies and let the market dictate sales. The strategy backfired, leading officials to reinstate incentives to curb declining sales.
Despite progress in reducing costs, EV manufacturers outside China still struggle to bring prices in line with traditional internal combustion engine vehicles. The United States presents a stark contrast to Europe, as the Trump administration’s rollback of incentives has left automakers navigating the transition without government support.
General Motors signaled its response this week, announcing a $4 billion investment in expanding its internal combustion engine vehicle production—marking a shift from its previously stated goal of going fully electric by 2035.