Global EV Sales Surge 27% Despite North American Slowdown, Data Shows

The electric vehicle revolution is accelerating worldwide, hitting a powerful 27% sales surge globally in the first seven months of 2025 compared to the same period last year. Over 10.7 million EVs found new owners worldwide, according to the latest analysis from leading EV research firm RHO Motion, released August 2025. Yet, this impressive growth masks a stark divide: while China and Europe charge ahead, North America is stalling, facing significant headwinds that threaten its EV transition.

The Global Growth Story

China remains the undisputed heavyweight champion of the EV market. Sales there skyrocketed by 29%, translating to a massive 6.5 million units sold. Europe followed closely with an impressive 30% increase, accounting for 2.3 million sales. Markets categorized under “Rest of the World” saw the most explosive growth, leaping 42% to nearly 900,000 units. This robust global performance underscores a deepening commitment to electrification across major economies. RHO Motion analysts attribute this sustained momentum to falling battery costs, expanding model choices, and increasingly supportive government policies outside North America. Major manufacturers like BYD, Volkswagen Group, and Hyundai-Kia are capitalizing on this demand, rapidly expanding their zero-emission lineups.

North America’s Uphill Battle

The picture is markedly different across the Atlantic. North American EV sales grew a mere 2%, reaching just 1 million units – the slowest growth rate globally. RHO Motion points to significant “policy headwinds” in the US and a noticeable slowdown in Canada as key factors. Uncertainty surrounding federal tax credits, evolving regulatory timelines, and persistent consumer concerns about charging infrastructure and costs are dampening enthusiasm. Automakers like Ford and GM have adjusted near-term EV production targets in response. However, analysts anticipate a potential short-term spike in US demand leading up to the September deadline for current IRA consumer tax credit eligibility, followed by a likely dip.

Signs of Shifting Currents?

Despite the overall strong upward trajectory, RHO Motion’s data reveals emerging nuances. China’s blistering growth rate showed signs of cooling, with sales dropping 13% from June to July 2025. While it’s too early to declare a definitive trend reversal, this dip warrants close monitoring. Factors like potential adjustments to local subsidies or market saturation in specific segments could be influencing this fluctuation. Nevertheless, the year-to-date figures demonstrate that EVs and hybrids continue to gain significant market share outside the US, reshaping the global automotive landscape.

The electrification race is undeniably heating up globally. While China and Europe lead the pack with robust growth, North America’s slower pace highlights the critical impact of consistent policy support and infrastructure investment. Overcoming consumer hesitancy and building a seamless charging network remain paramount for the US to catch up in this accelerating transition. Stay informed on the latest EV trends and policy shifts impacting your region.

Must Know

Q: How much have global EV sales grown in 2025?
Global EV sales surged 27% year-over-year for the first seven months of 2025, reaching 10.7 million units, according to RHO Motion data. This significant increase is primarily driven by strong performances in China and Europe.

Q: Which region leads in EV sales volume?
China remains the dominant market, selling 6.5 million electric vehicles in the first seven months of 2025 – a 29% increase. Europe followed with 2.3 million sales (up 30%), while North America lagged with only 1 million sales (up just 2%).

Q: Why is North American EV growth so slow?
RHO Motion cites “policy headwinds” in the US and a slowdown in Canada. Challenges include uncertainty around federal tax incentives (like the upcoming September IRA credit deadline), evolving emissions regulations, and persistent consumer concerns regarding charging infrastructure availability and upfront costs.

Q: Are EV sales slowing down anywhere else?
China experienced a 13% sales drop from June to July 2025, indicating a potential cooling-off period. While year-to-date growth remains strong (29%), this monthly dip suggests market dynamics, such as subsidy adjustments or segment saturation, might be influencing short-term demand fluctuations.

Q: What is expected for US EV sales near-term?
Analysts anticipate a possible short-term increase in US sales as consumers rush to qualify for existing federal tax credits before the September 2025 deadline under current IRA rules. However, a dip is expected afterward unless new policy clarity or incentives emerge.