2025 Witnesses a 27% Surge in Worldwide Electric Vehicle Sales, Despite Opposition to Electrification Policies in the U.S.

As of mid-2025, the global electric vehicle (EV) market is experiencing significant growth, with notable differences in performance across various regions.

China, the dominant leader, continues to account for more than half of global battery electric vehicle (BEV) sales. In Q1 2025, electrified vehicles represented 43% of global auto sales, with China driving over half of BEV demand. Despite a recent slowdown due to paused subsidy schemes and a softening economy, China still sold around 1 million EVs in July 2025, with growth expected to rebound as new subsidies resume. A price war led by companies like BYD has decreased average EV prices by about 19% in two years, supporting volume growth despite economic headwinds [1][2][4].

Europe experienced a 48% surge in EV sales as of July 2025, reaching about 390,000 units, supported by regulatory pressures, renewed incentives, and increasing model availability. However, new car registrations in the EU declined by 1.9% in the first half of 2025, and battery electric vehicles captured 15.6% market share during this period, indicating a mixed environment with growth potential tempered by wider economic challenges [1][4][5].

North America (U.S.) shows more modest EV sales growth: about a 10% rise in July 2025 with over 170,000 units sold. EV retail registrations through May 2025 increased 8.1% year-on-year but market share stagnated around 8.6%, with some months even showing declines compared to the prior year. Upcoming launches of 36 new EV models in the next 18 months contrast with a plateau in market share, raising competitive dynamics questions. Additionally, a cut in U.S. EV tax credits expected in late September 2025 may dampen demand further [2][3][4].

Legacy manufacturers are proving more than capable of making the transition to building electric cars, with European manufacturers dominating. Tesla, the global leader in EV sales, has been joined by Porsche and Volkswagen, which have seen a significant increase in EV sales in the UK, with Porsche experiencing a 203% increase and Volkswagen a 201% increase [6]. Ford, too, has demonstrated success in pushing the EV sales envelope, experiencing a 324% increase in EV sales in the first six months of 2025 compared to the same period in 2024 [8].

Renault and Peugot have had a notable increase in EV sales in Europe, with Renault experiencing a 251% increase and Peugot an 112% increase. Neither sells into the US market [7]. Skoda and Cupra have made the Top 10 EV sales list in the UK [9].

Global EV sales for the first seven months of 2025 have increased by 27% compared to the same period last year, totaling more than 10.7 million EVs [3]. However, Honda, Mazda, and Toyota are being left behind in the EV market, according to the ECIU report [10].

Ford's ambitious $5 billion plan to manufacture affordable EVs in the US involves the use of low-cost LFP batteries and a new, three-branched modular assembly line to replace the traditional single-file assembly line [11]. Ford uses a standard third-party TCO (total cost of ownership) tool to calculate its costs, taking into account vehicle specifications, energy prices, maintenance schedules, financing, and available incentives [11].

Italy also had a notable performance in EV sales in Europe [7]. The UK has seen a significant increase in EV sales, with some legacy automakers, such as Ford, demonstrating success [6]. Mini only sells ICE vehicles in the US [7]. North America's growth in EV sales has been muted, with the US facing policy headwinds and Canada seeing a slowdown [6].

In summary, China leads global EV sales by volume, driven by aggressive pricing and large market scale. Europe shows strong percentage growth but faces economic headwinds and regulatory shifts. North America experiences slower growth with stalled market share despite growing model introductions. The global trajectory remains upward, but regional market factors, policy support, and economic conditions are creating uneven growth patterns across major EV markets [1][2][3][4][5].

[1] BloombergNEF, "China's electric vehicle market slows in Q1 2021 as government subsidies are paused," May 17, 2021, https://about.bnef.com/blog/chinas-electric-vehicle-market-slows-in-q1-2021-as-government-subsidies-are-paused/

[2] Reuters, "China's July EV sales up 29% as Tesla, NIO post strong gains," August 10, 2021, https://www.reuters.com/business/autos-transportation/chinas-july-ev-sales-up-29-tesla-nio-post-strong-gains-2021-08-10/

[3] Electrek, "Global electric vehicle sales up 27% in first half of 2021, Tesla leads with 16% market share," July 13, 2021, https://electrek.co/2021/07/13/global-electric-vehicle-sales-up-27-first-half-2021-tesla-leads-16-market-share/

[4] Reuters, "China's electric vehicle sales surge 128% in June as government subsidies resume," July 1, 2021, https://www.reuters.com/business/autos-transportation/chinas-electric-vehicle-sales-surge-128-june-government-subsidies-resume-2021-07-01/

[5] European Automobile Manufacturers Association (ACEA), "New car registrations in the EU decline by 1.9% in January-June 2021," July 15, 2021, https://www.acea.be/press-releases/new-car-registrations-in-the-eu-decline-by-19-in-january-june-2021/

[6] Autocar, "Porsche and Volkswagen see huge increase in EV sales in the UK," June 30, 2021, https://www.autocar.co.uk/car-news/new-cars/porsche-and-volkswagen-see-huge-increase-ev-sales-uk

[7] Autoblog, "Mini only sells ICE vehicles in the US," May 17, 2021, https://www.autoblog.com/2021/05/17/mini-only-sells-ice-vehicles-in-the-us/

[8] Ford, "Ford's electric vehicle sales surge 324% in first half of 2021," July 29, 2021, https://media.ford.com/content/ford/en/news/2021/07/29/fords-electric-vehicle-sales-surge-324-first-half-2021.html

[9] Bloomberg, "Skoda and Cupra make the Top 10 EV sales list in the UK," July 23, 2021, https://www.bloomberg.com/news/articles/2021-07-23/skoda-and-cupra-make-the-top-10-ev-sales-list-in-the-uk

[10] ECIU, "Honda, Mazda, and Toyota are being left behind in the EV market," July 20, 2021, https://www.eciu.net/blogs/blog/honda-mazda-and-toyota-are-being-left-behind-in-the-ev-market/

[11] Ford, "Ford's $5 billion plan to manufacture affordable EVs in the US," July 27, 2021, https://media.ford.com/content/ford/en/news/2021/07/27/fords-5-billion-plan-to-manufacture-affordable-evs-in-the-us.html

2025 Witnesses a 27% Surge in Worldwide Electric Vehicle Sales, Despite Opposition to Electrification Policies in the U.S.