Global electric vehicle (EV) sales are expected to grow by 18% in 2025, reaching over 20 million units, according to Rho Motion’s latest forecast.
China will remain the key driver of this growth, with sales projected to hit 12.9 million, a 17% increase from 2024. Europe, encompassing the EU, EFTA, and the UK, will see a 15% rise to 3.5 million vehicles, while North America is forecast to grow by 16%, totalling 2.1 million EVs sold.
Rho Motion’s Head of Research, Iola Hughes, explained that 2025 will be defined by shifting legislative frameworks in key regions. China’s extension of its popular trade-in subsidy programme will sustain growth in its domestic market while supporting further global expansion.
Major Chinese manufacturers like BYD and Great Wall Motors are set to open new production plants overseas, including facilities in Brazil and Hungary, allowing for broader international reach.
As a result, Rho Motion anticipates that China’s dominance will expand globally, driven by both domestic growth and increased exports.
In Europe, carmakers are preparing for the impact of new emissions standards designed to reduce CO2 output.
Following a 3% market decline in 2024, sales are expected to rebound as manufacturers introduce smaller, more affordable EV models targeting the sub-€25,000 segment.
Despite these efforts, many manufacturers are projected to fall short of meeting emissions targets, facing fines that could collectively reach up to €10 billion.
Meanwhile, in North America, the legislative backdrop under President Donald Trump presents uncertainty, but 2025 is expected to see steady growth as automakers continue to execute plans already underway.
The short-term impact of reduced federal support for EVs will be limited, though Rho Motion anticipates potential long-term consequences in the US market.
Latin America and other emerging markets will also play a significant role in the EV sector’s global expansion. Chinese-made vehicles, which captured over 80% of the Latin American EV market in 2024, are expected to maintain their strong momentum.
The Asia-Pacific region will similarly benefit from China’s export-driven strategy as production increases globally.
