Global EV Sales To Grow 20% in 2025, U.S. and Canada Buck Trend

According to foreign media reports, global electric vehicle sales are expected to reach 20.7 million units in 2025, a year-on-year increase of 20%, continuing the growth momentum seen since the beginning of the year. Global sales in December alone approached 2.1 million units, indicating that the electrification transition is still accelerating in major markets outside of North America. China continues to lead with 12.9 million units sold, a 17% year-on-year increase. The European market has shown outstanding performance, with full-year sales reaching 4.3 million units, an increase of 33%. Other regions have also achieved significant growth, with sales in Southeast Asia nearly doubling, South and Central America growing by 49%, and South Korea rising by 50%.

Image source: Tesla

Data shows that growth in non-traditional automotive markets is primarily driven by the large-scale entry of Chinese-made electric vehicles into overseas markets. Against the backdrop of intensifying domestic price competition, Chinese automakers have accelerated their export pace, fueling sales expansion in regions such as Southeast Asia and Latin America. Mexico stands out as an exception in North America, with EV sales projected to grow by 29% in 2025, primarily driven by the import of low-priced Chinese models.

In contrast, the North American market as a whole saw a 4% year-on-year decline. US full-year sales grew by only 1%, but this figure masked significant quarterly fluctuations. Due to the termination of the federal electric vehicle tax credit policy at the end of September, there was a surge in vehicle purchases from August to September, followed by a nearly 50% drop in sales in the fourth quarter compared to the previous quarter. The Canadian market experienced a more pronounced downturn, with a 49% decrease in full-year sales as incentive policies ended earlier.

Industry analysis indicates that policy support has a decisive impact on market demand. In 2025, electric vehicle sales in Germany grew by 48%, while the UK saw a 27% increase, and France achieved a year-end rebound following the restoration of consumer subsidies. Growth in South Korea was driven by a combination of new model launches and government incentives. The Japanese market remains dominated by hybrid models, with the penetration rate of battery electric vehicles maintaining a level of approximately 3% for several consecutive years.

Looking ahead to 2026, some analysts predict that U.S. electric vehicle sales may shrink by nearly a third. Against this backdrop, Ford has decided to halt production of the F-150 Lightning electric pickup truck and instead develop a hybrid version. The Ram brand has also not launched its electric truck as planned. The European market, however, is maintaining growth momentum thanks to stricter emission regulations and continued subsidy support, and has not experienced a similar disruption in demand.

The global electric vehicle (EV) landscape exhibits a clear divergence. China, Europe, and several emerging markets are continuously advancing electrification driven by both policy and product offerings, while the North American market is experiencing stagnant growth in the absence of fiscal incentives. Manufacturers are adjusting their product strategies in response to regional market changes, and supply chain layouts and export directions are also evolving accordingly.