IEA: Global Electric Car Sales Topped 20 Million In 2025

The International Energy Agency (IEA) announced global electric vehicle (EV) sales hit 20.7 million units in 2025, marking a 20% year-on-year increase and representing a quarter of total automotive sales worldwide. China led the market with 60% of global EV sales, while domestic new energy vehicle (NEV) sales—including Battery Electric Vehicles (BEVs) and Plug-in Hybrids (PHEVs)—reached 12.86 million, surpassing traditional internal combustion engine cars for the first time. Chinese automakers sold 34.35 million vehicles globally, capturing 35.6% of the world market and overtaking Japan as the leading automotive exporter. Demand surged in South America and Southeast Asia, with exports rising 21% to over 7 million units. BYD remained the top seller in China with 3.5 million NEVs (27% market share), while Geely nearly doubled its EV sales to 12.4% share. In the U.S., EV sales dropped 4% to 1.8 million units after federal tax credits expired under the Omnibus Budget, Budget, and Appropriations Act (OBBBA) in late 2025. Tesla’s U.S. sales fell 7% to 589,160 units, though its market share grew to 56% due to resilience post-credits. Legacy automakers like General Motors and Volkswagen saw triple-digit growth in certain periods, while Hyundai’s EV deliveries rose 45%. Europe experienced a 29.7% surge in BEV sales to 2.58 million units, driven by the EU’s 15% fleet emissions reduction mandate and higher fuel prices. Legacy automakers accelerated EV production to avoid multi-billion-euro fines, while new affordable models boosted demand. The EU’s CO₂ regulations forced automakers to lower average emissions compared to 2021 levels, accelerating the shift toward electrification.