The global electric vehicle (EV) market recorded another landmark year in 2025, with worldwide sales surpassing 20 million units, representing a 20% increase compared to 2024. As a result, one out of every four new cars sold globally was electric, highlighting the rapid pace of transport electrification. The growing adoption of EVs also contributed to global energy security by reducing oil demand by an estimated 1.7 million barrels per day during a period marked by energy market volatility linked to geopolitical tensions in the Middle East.
Europe emerged as one of the strongest-performing regions in 2025. EV sales in the region increased by 30%, supported by stricter European Union carbon dioxide emission standards for vehicles. This helped electric vehicles capture 28% of total new car sales across the continent. China, however, continued to dominate the global EV market, accounting for around 60% of worldwide electric car sales. Despite a temporary suspension of its domestic vehicle trade-in incentive scheme, EVs made up nearly 55% of all new car sales in China during the year.
In the United States, the market remained relatively stable, with electric vehicles accounting for just under 10% of total new car sales. However, demand weakened significantly toward the end of 2025 following the expiration of federal purchase tax credits, highlighting the continued importance of policy support in driving consumer adoption.
Emerging economies also posted impressive growth. Southeast Asia experienced more than a twofold increase in EV sales, with Viet Nam, Thailand, and Indonesia leading regional expansion. Latin America recorded a 75% rise in electric vehicle sales, largely driven by strong consumer demand in Brazil and Mexico. These trends indicate that EV adoption is expanding beyond traditional markets and gaining momentum across developing economies.
The shift toward electrification was not limited to passenger vehicles. Global sales of electric trucks doubled during 2025, allowing them to account for 9% of all truck sales worldwide. China remained the key driver of this growth, where one in every four trucks sold was electric. Electric two- and three-wheelers also continued to gain popularity, with sales doubling in Viet Nam and increasing rapidly across several African markets.
China further strengthened its leadership across the EV supply chain. The country manufactured nearly 75% of the world’s electric cars and produced more than 80% of global battery cells. It also doubled its electric vehicle exports compared to 2024, reinforcing its position as the leading global supplier. Meanwhile, automakers increasingly focused on software-defined vehicles, faster charging technologies, and the early deployment of vehicle-to-grid (V2G) systems to improve charging efficiency and reduce pressure on electricity networks.
The global EV market experienced a slower start in early 2026. Sales during the first quarter declined by 8% compared to the same period in the previous year due to policy changes in China and the United States. However, strong growth in Europe, where sales rose by 30%, and the Asia-Pacific region excluding China, which recorded an 80% increase, helped offset part of the decline. Higher fuel prices and a wider range of available electric vehicle models also supported demand.
Despite short-term market uncertainties, the long-term outlook for electric mobility remains highly positive. Global EV sales are expected to reach approximately 23 million units in 2026, accounting for around 28% of all new car sales. Looking ahead, the worldwide electric vehicle fleet is projected to expand more than sixfold to around 510 million vehicles by 2035. Under current policy trends, EVs are expected to account for half of global car sales and reduce oil demand by around 5 million barrels per day by 2030. Continued improvements in affordability, supportive government policies, and technological innovation are expected to make electric mobility the primary driver of growth in the global automotive industry over the coming decade.
