Global EV Sales Soar 21%, Led by Europe and China, Leaving North America Behind
In the opening months of 2025, North America witnessed a significant lag in Electric Vehicle (EV) adoption compared to China and Europe, largely due to dwindling government incentives and anti-electrification policies within the US. Conversely, global interest in EVs is escalating at an unprecedented pace.
According to data compiled by UK market research firm Rho Motion, worldwide sales of Electric Vehicles increased by 21% between July 2024 and July 2025, reaching a total of 10.7 million units during the first seven months of the year.
China and Europe led the growth charge. Sales in China surged by 29%, amounting to 6.5 million vehicles, while European sales witnessed a 30% spike, reaching 2.3 million units this year. Notably, some European markets have shown remarkable progress, with Italy and the UK recording increases of 40% and 30%, respectively. Despite France experiencing an 11% year-on-year decline, the overall trend remains optimistic.
In contrast, North American EV sales registered a more modest increase of 2%, amounting to approximately 1 million units. Research firm Rho Motion attributes this underperformance to a “multi-billion-dollar hit” from tariffs, partially offset by reduced requirements to purchase Zero Emission Vehicle (ZEV) credits. However, the research suggests that Ford’s plans to introduce its Universal EV Platform, coupled with an anticipated $30,000 electric midsize pickup featuring LFP batteries in 2027, may potentially bolster sales.
EV sales beyond China, Europe, and North America experienced the fastest growth in relative terms, rising by 42%. While the absolute numbers were less impressive, with only 0.9 million EVs sold during this period, it is worth noting that countries like China offer substantial subsidies for those transitioning to electric vehicles. American EV buyers have yet to benefit from such incentives.
The expiry of a $7,500 federal EV tax credit on September 30, 2025, as part of Trump’s Big Beautiful Bill, is expected to temporarily boost sales in the third quarter. However, Rho Motion predicts a subsequent decline in demand post-expiry.
Additionally, the Transportation Department’s attempt to dismantle plans for a nationwide charging network has raised concerns. In June, a federal judge in Washington state ordered the Trump administration to resume distribution of funds to build EV chargers.
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