EV Sales Are Booming Everywhere Except One Place

- Worldwide EV sales jumped 20 percent to a record 20.7 million.
- Europe and China boomed while America actually went backward.
- Loss of incentives left US new-car buyers hitting the pause button.
The global electric car party is still raging, but the US has decided to go home to bed early with a nice soothing cup of gasoline. New data shows worldwide EV sales hit 20.7 million units in 2025, up a healthy 20 percent from 2024.
That total was capped by a strong finish, with roughly 2.1 million EVs sold globally in December alone, underlining that momentum elsewhere remained intact through year-end. Almost everywhere on Earth people bought more electric cars. But in North America it’s a different story.
More: If You Think EV Sales Are Dead, You’re Probably Staring At The Wrong Map
China remained the heavyweight champion with 12.9 million EVs sold, up 17 percent. Europe turned into the surprise star, rocketing ahead by 33 percent to 4.3 million units. Even the rest of the world got in on the action with a massive 48 percent surge to 1.7 million units.
Much of that growth outside the traditional EV strongholds was fueled by a flood of Chinese-built models, as domestic price competition pushed manufacturers to look overseas.
Then we get to North America, which managed a rather awkward 4 percent decline, Rho Motion reports. And it would have been worse if Mexico’s EV sales hadn’t grown 29 percent thanks to an influx of cheap Chinese cars.
In the US, that annual decline masked a sharp late-year swing, with buyers rushing to lock in incentives before September, followed by a steep pullback once those credits disappeared.
Tax-Credit Carnage
The removal of federal tax credits at the end of September pulled the rug out from under the US market, and buyers reacted exactly as you might expect, meaning that EV sales for the full year grew by just 1 percent. Sales spiked in August and September as incentives wound down, then collapsed in the final quarter, dropping nearly 50 percent compared with the previous quarter.
But in Canada, which lost its EV incentives much earlier in 2025, full-year sales tanked by 49 percent.
Analysts now predict US EV sales will shrink by almost a third in 2026. No wonder Ford is scrapping its F-150 Lightning in favor of a hybrid and Ram opted not to bring an electric truck to market at all.
Europe Keeps Plugging In
Across the Atlantic the mood could not be more different. Europe sprinted ahead thanks to stronger subsidies and looming emissions rules. Germany jumped 48 percent and the UK rose 27 percent.
Even France managed to finish the year in positive territory after a slow start. That late recovery in France was driven largely by renewed consumer incentives, after months spent underwater earlier in the year.
Other regions quietly delivered impressive numbers too. Southeast Asia almost doubled sales, South and Central America grew by 49 percent, and South Korea enjoyed a 50 percent rise thanks to new models and government incentives.
Japan, however, stayed stubbornly loyal to hybrids, proving not every country is ready to go fully electric. EV penetration there remained stuck at around 3 percent for yet another year, despite steady gains elsewhere in the region.
Incentives Are Key
The message from the data is clear. Around the world the EV transition is still accelerating, but America had a taste and decided that, without financial sweeteners, it preferred the old menu. Whether that’s a temporary pause or a long detour will depend on politics, prices, and what carmakers do next.
EV sales by region 2025
| Region | Sales (millions) | Diff. vs 2024 |
| Global | 20.7 | +20% |
| China | 12.9 | +17% |
| Europe | 4.3 | +33% |
| North America | 1.8 | -4% |
| Rest of World | 1.7 | +48% |












