Global sales of fully electric and plug-in hybrid vehicles are expected to increase by at least 17% in 2025, exceeding 20 million units, according to research firm Rho Motion. This growth is attributed to the extension of China’s auto trade-in subsidies and the implementation of stricter CO2 emission targets in Europe.
In 2024, electric vehicle (EV) sales in China surged by a record 40%, reaching 11 million units. The continuation of subsidies is anticipated to further boost sales beyond the previously forecasted 17% growth for 2025, solidifying China’s dominance in the EV market.
Europe, the world’s second-largest EV market, is projected to see a 15% increase in sales, driven by new CO2 emission targets and the availability of more affordable models. However, automakers may still face approximately €10 billion in fines for failing to meet EU emission standards, despite purchasing credits from EV manufacturers.
In the United States, EV sales are expected to grow by 16% in 2025. While recent policy changes have introduced some uncertainty, the transition to electric vehicles remains underway. Rho Motion cautions that these policy shifts could have long-term effects, potentially leading to a 47% decrease in EV battery demand by 2040 under a worst-case scenario.
The global rise in EV sales underscores a significant shift in the automotive industry toward sustainable transportation solutions.
