Global EV Sales Surpass 20 Million in 2025, IEA Reports, as China Consolidates Dominance

Global electric vehicle sales exceeded 20 million units for the first time in 2025, reaching 20.7 million, a 20% year-over-year increase, according to the International Energy Agency. EVs now represent one-quarter of all new car sales worldwide. China dominated, accounting for 60% of global EV sales. New energy vehicles, including battery electric and plug-in hybrids, outsold combustion-engine cars in the country for the first time, with 12.86 million units sold. BYD led with 3.5 million registrations, capturing 27% of the NEV market. In contrast, U.S. EV sales declined 4% to 1.8 million after the termination of $7,500 federal tax credits on Sept. 30, 2025. Tesla's U.S. sales fell 7% to about 589,000, though its market share jumped to 56% as competitors faltered. European battery electric vehicle sales surged 29.7% to 2.58 million, propelled by strict EU fleet CO2 regulations and an influx of lower-cost Chinese models. Emerging markets saw EV sales nearly double to 1.2 million, with Southeast Asia’s market share reaching 20%. India’s sales topped 2.27 million, driven by two- and three-wheelers.