That’s a 25% jump from 2023, December alone saw 1.9 million EVs sold, a 5% increase on the previous month.
However, regional disparities highlight the challenges facing the EV market in 2025 says a report by analysts Rho Motion.
China led the charge with 11 million EVs sold, up 40% from 2023. Strong incentives like a boosted car trade-in scheme drove demand, particularly for plug-in hybrids (PHEVs), which surged 81%.
BYD dominated, accounting for one in three Chinese EV sales. Looking ahead, BYD plans to start European production in Hungary to expand its market amid rising EU tariffs.
In contrast, European EV sales fell by 3% to 3 million units. Germany’s market struggled after subsidy cuts, the UK had 400,000 EV sales, up nearly 20%, however much of this was heavily discounted by manufacturers.
North America recorded a solid 9% growth, with 1.8 million units sold.
However, the report says the EV boom faces risks in 2025, with incoming President Trump pledging to cut key subsidies and roll back EPA emission standards.
Rho Motion’s Charles Lester said: “What is clear is that Government carrots and sticks are working. In North America, the 9% growth can mostly be attributed to consumer subsidies and over in the UK, the ZEV mandate has highly incentivised manufacturers to push their low emission cars.
“Meanwhile the removal of subsidies in Germany had a devastating impact on the whole European market, if the US follows suit, we may see the same there.”
This year the EV industry must navigate shifting policies and growing competition, if it is to convince more consumers it’s time to switch.
