Globally, EV sales continue to grow strongly. In 2025, nearly 22 million electric and plug-in hybrid vehicles are expected to be sold worldwide, a 25% increase over 2024. China leads the charge, accounting for about two-thirds of the global EV market, followed by Europe and the US. In fact, 2025 could see one in every four new cars sold around the world being electric.
However, the growth rate of EV sales has recently eased in some regions. The US market, for example, has slowed down due to regulatory changes, including the phase-out of federal EV tax credits and uncertainty over emissions standards. Although EV sales in the US are still growing, the pace is slower than earlier forecasts.
China has also seen a dip in plug-in hybrid sales after temporary subsidy cuts, but its battery electric vehicle market remains robust. Meanwhile, Europe continues to see increasing EV adoption, boosted by government incentives and tighter emissions targets. Emerging markets in Southeast Asia, Latin America, and Africa are also beginning to show rapid growth in EV sales, though their total volumes remain smaller.
While some manufacturers are pausing or cancelling specific new EV models, this is largely driven by supply chain challenges, overcapacity in battery production, and shifting market strategies rather than a collapse in demand. Automakers are fine-tuning their line-ups to focus on the most promising vehicles and markets.
In summary, the EV market is maturing. Demand is strong and growing globally, but regional differences and policy changes mean growth rates will fluctuate. What may look like a slowdown or pullback is really part of the normal evolution of an emerging technology becoming mainstream. The headline that EV demand is waning is mostly hype and oversimplification.
Electric vehicles remain an unstoppable trend shaping the future of transportation, with more models, better technology, and broader consumer acceptance driving steady long-term growth.
