Petrol and diesel car sales to 'nosedive' as drivers prefer to buy electric vehicles - 'Market has spoken'

This represents a jump of six per cent, with a total of 650,000 more electric vehicles being sold across the globe throughout the last 12 months.

Significant growth was also seen for plug-in hybrid vehicles, with sales soaring to 4.85 million. This is a 55 per cent (1.7 million vehicles) jump compared to 2023.

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While sales of petrol and diesel vehicles reached 44 million, this is the lowest figure for four years and down more than two million (4.5 per cent) compared to 2023.

Internal combustion engine vehicles are the only fuel type vehicle around the world to see sales decrease as more drivers make the switch to zero emission motoring.

The GEVT report states that the increases were primarily driven by China, which saw volumes increase by 490,000. This was followed by the United States with 97,000 new vehicles and the UK with 62,000 additional registrations.

In December alone, 1.2 million battery electric cars were registered, while all vehicles with a plug accounted for 26.8 per cent of sales.

This represents the fifth consecutive month that they have accounted for more than one in four registrations, showing a clear shift in consumer demand.

Ben Nelmes, CEO of New AutoMotive, said: "The market has spoken - the transition isn't coming; it’s already here.

"The real challenge for manufacturers is weaker than expected demand for petrol and diesel cars, as global sales nosedive.

"The numbers tell us that ambitious consumer targets will help European manufacturers out-compete Chinese firms more effectively than any tariffs can - whilst delivering big savings for buyers and improving the lives of people around the world."

A number of countries have seen a huge spike in sales of battery electric vehicle vehicles between 2023 and 2024, with Chile (259 per cent), Brazil (219 per cent), Singapore (164 per cent) and Malta (117 per cent) all growing substantially.

On the other end of the spectrum, Iceland saw a staggering 70 per cent drop in BEV sales between 2023 and 2024. This was followed by Romania (-36 per cent), Latvia (-30 per cent), Germany (-27 per cent) and Slovenia (-27 per cent).

Norway is by far and away the biggest supporter of zero emission vehicles with EVs having a total market share of 88.9 per cent - the highest around the world.

Experts are hoping the growth of electric vehicles will continue around the world over the next 11 months as prices fall and drivers look to increase their environmental credentials.

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According to the Allianz Risk Barometer report, political issues including trade disputes, civil unrest or military conflicts, could threaten supply chain stability for certain vehicles.

It added: "High-tech and green energy sectors, which have been the subject of trade wars and protectionism, are particularly at risk.

"For example, in 2023 China restricted the export of graphite, an essential component for lithium-ion batteries used in electric vehicles.

"Analysis by Allianz and others shows that within the last decade export restrictions on critical raw materials increased by a factor of five. Some products in electric vehicles and consumer goods are as much as 91 per cent dependent on China."