Global EV sales hit all-time high in 2025

London-based data analytics company Benchmark Mineral Intelligence has released its electric vehicle (EV) sales figures for 2025.

According to the data, global electric vehicle sales reached a record 20.7 million units in 2025, marking a year-on-year increase of 20%, CE Report quotes Anadolu Agency.

A total of 12.9 million EVs were sold in China. Sales in China rose by 17% compared to 2024, although growth slowed in the final quarter of the year.

The growth of EV sales in China in 2025 was driven by intense domestic competition, aggressive pricing strategies, and an expanding range of vehicle models.

As competitive pressure increased in the domestic market, Chinese automakers increasingly turned to overseas markets. This export flow benefited South America, Southeast Asia, and Central Asia, and also became a key driver of EV sales growth in the rest of the world.

Electric vehicles from Chinese brands accounted for 19% of total EV sales in the European market last year.

According to Benchmark Mineral Intelligence’s analysis, electric vehicles in China will be subject to a purchase tax for the first time this year. In addition, a new trade-in subsidy program will be introduced, replacing the fixed-rate subsidy applied in 2025 that favored smaller vehicles. Under the new scheme, subsidies will be linked to vehicle prices, meaning overall subsidy levels in China will be lower than in 2025.

33% growth in Europe

Electric vehicle sales in Europe rose by 33% year-on-year in 2025.

The year was marked by regulatory changes in the European EV market, including the softening of EU emission targets throughout the year. In addition, consumer support increased as many major European countries expanded or increased subsidies for electric vehicle purchases.

EV sales grew in many European countries last year. In major markets such as Germany and the United Kingdom, sales rose by 48% and 27% respectively. In France, where sales started the year weakly, growth of 2% was recorded.

This year, the most significant development in the European EV market is expected to be amendments easing the planned ban on the sale of new internal combustion engine vehicles, previously set for 2035.

Under the new plan, future carbon emission standards for passenger cars and light commercial vehicles will be revised. Automakers’ target of reducing exhaust emissions by 100% from 2035 will be adjusted to 90%. The remaining 10% of emissions may be offset through the use of low-carbon steel produced in the EU, e-fuels, and biofuels.

EV sales in the US up just 1%

In North America — including the United States, Canada, and Mexico — electric vehicle sales fell by 4% year-on-year to 1.8 million units in 2025, marking a turbulent year for the region.

In the United States, the removal of EV tax credits as of September 30, 2025, combined with protectionist trade policies, resulted in EV sales rising by just 1% year-on-year.

In Canada, following the removal of subsidies at the beginning of 2025, the EV market performed weakly, with sales dropping by 41% year-on-year.

In Mexico, however, sales increased by 29%, driven by a rise in imports of Chinese electric vehicles.

Due to limited consumer incentives, a lack of supportive legislation, and concerns that electrification investments may slow, the outlook for the North American EV market is expected to remain weak this year.

EV sales in the United States are forecast to decline by 29% this year.

As reported by CE Report, in the rest of the world, electric vehicle sales rose by 48% year-on-year in 2025 to 1.7 million units, supported by the growing presence of Chinese brands in these markets.

First contraction in the US market in seven years expected

Commenting on the data, Charles Lester, Data Manager at Rho Motion, part of Benchmark Mineral Intelligence, said the 20% year-on-year growth in global EV sales in 2025 demonstrates the market’s resilience.

“Europe has overtaken China to become the fastest-growing region. It is not surprising that North America experienced a turbulent year. In the year since taking office, US President Donald Trump has delivered on many of his promises to roll back incentives for electric vehicle purchases and localize production. We expect the US market to shrink by nearly one-third this year, marking the first contraction in seven years,” he said.