Global sales of electric vehicles (EVs) are set to rise by 17% this year, surpassing 20 million units, according to research firm Rho Motion. The surge is fueled by Chinaโs extended auto trade-in subsidies and Europeโs stricter CO2 emission targets.
China, the worldโs largest EV market, is expected to see sales grow even faster than previously forecast, with an estimated 17% increase in 2025. Last year, EV sales in China jumped by a record 40%, reaching 11 million units.
Europe, the second-largest EV market, is also poised for growth. Rho Motion predicts a 15% rise in sales, up from 3 million EVs sold in 2024. Iola Hughes, Head of Research at Rho Motion, said, โCheaper models and new emission targets will drive growth, though at a slower pace than 2023.โ
However, carmakers in Europe still face risks. Despite pooling emissions credits, they could incur fines of up to โฌ10 billion ($10.51 billion) for missing EU targets.
In the US, EV sales are expected to grow by 16% in 2025, despite policy changes under the Trump administration. Hughes warned, โUncertainty has hit the US market, but the shift to electric vehicles is still very much happening.โ
Emerging markets are also embracing EVs. Chinese-made vehicles dominated Latin America in 2024, capturing over 80% of the market, and are set to expand further in Asia-Pacific and other regions.
The global EV revolution shows no signs of slowing. As Hughes noted, โWe will still see growth over the next decade, even with challenges ahead.โ
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