Saturday, May 10, 2025

Ban state subsidies – electric cars plummet by 18 percent

While global electric car sales continue to rise, they are plummeting in France by 18 percent after the state removed subsidies for the car type.

Electric car sales in France are plummeting. New figures show a drop of 18 percent. This comes after the French government decided to remove financial subsidies for electric car buyers.

This development contrasts with the general trend worldwide, where several significant increases are being seen.

Increases that must be explained by the fact that the numbers are already very small, which is why the increases look drastic.

The removal of subsidies in France appears to have had a direct negative effect. Buyers no longer have the same economic incentive to choose an electric car. This is clearly reflected in the sales statistics for the first quarter of 2025.

At the same time, other major European markets are reporting progress. Sales have increased in the UK, Germany and Italy. However, in several cases, the increases have come from relatively weak sales.

This shows how sensitive the electric car market can be to political decisions. Financial support has played a role in boosting sales in many countries.

The Danish car importers – who now call themselves Mobility Denmark – also believe this. In fact, they fear that Danes will completely lose interest in electric cars if the low registration tax disappears.

When support disappears, it can affect consumer choices. The French example clearly emphasizes this point.

Globally, it doesn't look so nice either.

Despite challenges such as the lapse of subsidies in several places, the global picture looks different. The global market for electric cars generally experienced growth in early 2025.

The analysis firm Rho Motion has collected data from various markets. Their figures show a significant increase globally. In March 2025, 1.7 million electric cars were sold worldwide. This is an increase of 40 percent compared to the previous month.

Looking at the entire first quarter of 2025, global sales reached 4.1 million electric cars. This corresponds to an increase of 29 percent compared to the same period the year before.

Charles Lester from Rho Motion comments on the figures.

"This quarter, although turbulent, has seen strong growth globally for the electric vehicle market."

China remains the driving force behind global electric car sales, with 2.4 million electric cars sold in the first quarter, an increase of 36 percent.

In Europe, 900,000 electric cars were sold during the period. That's a growth of 22 percent. North America followed with 500,000 new electric cars. Or a plus of 16 percent.

Market shares and possible trade barriers

The share of electric cars in total global car sales is also increasing. Preliminary figures for the first quarter of 2025 show total car sales of 91.6 million cars. This is an increase of 3.4 percent compared to the previous year.

With 4.1 million electric cars sold, they accounted for 4.5 percent of the total market in the quarter. According to ACEA, an association of European car brands, electric cars within the EU make up just 1.8 percent of the car fleet.

Although the general trend is upward for electric cars, Charles Lester believes that a trade war with the United States will generally stand in the way of electric cars.

A burgeoning trade war could potentially put a damper on the growing market.

– Significantly high tariffs have guaranteed a chilling effect on this industry due to a highly international supply chain

The future of electric car sales therefore depends not only on consumer interest and technology. Political decisions about subsidies and international trade agreements also play a significant role.

The French decline is an example of the effect of changed support schemes. But in Sweden and Germany, drivers also have to do without support for new electric cars.

At Boosted.dk we follow developments closely. For example, read more about how car manufacturers like Volkswagen are navigating the market and now don't believe they can do without the combustion engine. Read more here .

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