Global EV Sales Go Full Throttle: Expected To Surpass 20 Million In 2025
China’s Dominance, Europe’s Rebound, And North America’s Policy Shifts Fuel A Record Year For Electric Vehicles, Marking A Milestone In Global Electrification
With a new milestone reached by the electric vehicle (EV) industry, global EV sales are projected to exceed 20 million units in 2025, marking an 18% increase from the previous year.
China’s EV Market Keeps Growing
According to Rho Motion, China continues to dominate the global EV market, with expected sales of 12.9 million units in 2025, representing a 17% increase from their record-breaking performance in 2024 when sales jumped 40% to 11 million vehicles. The country’s success is bolstered by the extension of its popular trade-in subsidy program and an aggressive international expansion strategy.
Chinese automakers are particularly aggressive in their global expansion, with companies like BYD and Great Wall Motors establishing new production facilities in Brazil and Hungary. This international growth strategy has already shown success in Latin America, where Chinese-made EVs have captured over 80% of the market share, with similar trends expected to continue in the Asia-Pacific region and other emerging markets.
Europe Rebounds After 2024 Slump
The European market, which experienced a challenging 2024 with a 3% decline in sales, is poised for a comeback with projected growth of 15% in 2025. This revival is driven by new emissions standards and the introduction of more affordable EV models priced under €25,000 (around $25,978). However, European automakers face potential penalties of up to €10 billion for failing to meet EU emission targets, despite efforts to purchase credits from other EV manufacturers.
North America Navigates Policy Shifts
In North America, the market is expected to grow by 16% to around 2.1 million units, even as the industry navigates significant political changes under the Trump administration. While recent policy shifts, including the rollback of electrification targets, are expected to have minimal immediate impact, Rho Motion analysts warn of potential long-term consequences, including a possible 47% reduction in EV battery demand by 2040 in a worst-case scenario.
“If 2024 was the year of elections, 2025 is the year of legislation,” explains Iola Hughes, Head of Research at Rho Motion. “While we’re seeing significant policy changes across major markets, the shift to electric vehicles remains robust and continues to show growth across all regions.”
Regional Policies Drive Change
The industry’s transformation in 2025 is being shaped by various regional factors: Europe’s implementation of stricter CO2 emission targets, China’s extended subsidy programs, and the U.S.’s evolving regulatory landscape. Despite these complex dynamics, the overall trajectory of EV adoption remains positive, reflecting the industry’s resilience and the growing global commitment to vehicle electrification.
As the market continues to mature, industry observers anticipate further consolidation among manufacturers, particularly in China, where EV penetration is expected to surpass 50% of total vehicle sales in the coming years. This evolution of the market structure, combined with ongoing technological advances and expanding infrastructure, suggests that the EV revolution is entering a new phase of sustained growth and market maturity.
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