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IEA (2026), Global Energy Review 2026, IEA, Paris https://www.iea.org/reports/global-energy-review-2026, Licence: CC BY 4.0
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Technology: Electric vehicles
Electric car sales increased by more than 20% year-on-year in 2025, rising to 21 million units, with one in four cars sold being electric. This was in line with the IEA’s forecast for annual sales share in the 2025 edition of the Global EV Outlook.
Intense domestic competition, attractive prices and the growing availability of different models have supported the rapid rollout of EVs in China, with electric cars capturing more than half of all annual car sales for the first time in 2025. Sales of electric heavy-freight trucks also tripled in 2025, reaching more than 200 000 units. Almost all the growth in China’s electric car sales came from pure battery electric vehicles, with plug-in hybrids seeing a smaller increase (4%).
In the European Union, electric car sales increased by 30% in 2025. The biggest EU car market – Germany – saw significant growth in electric car sales, as did Spain and Italy, following a reintroduction of purchase subsidies in those two countries. Other large-volume markets saw growth in electric car sales as well. In Poland, sales increased by 140%, while the Netherlands saw a 25% rise. In France, sales volumes were similar to 2024.
Europe as a whole overtook China as the fastest growing major market for electric cars. In the United Kingdom, sales rose by over 25%. In Norway, battery electric cars reached a record 96% share of all car sales. Electric medium- and heavy- freight truck sales also started to pick up in Europe, increasing by around 40% and reaching a 3% market share in 2025.
In the United States, electric car sales declined by 2%, largely the result of the elimination both of federal tax credits after September and of fines for not meeting fuel economy standards. Before the elimination of tax credits, sales in the United States reached an all-time high in the third quarter of 2025.
Emerging market and developing economies outside China continued to see significant growth in electric car sales, registering an annual increase of around 80%. In 2025, electric car sales in these countries reached volumes equivalent to Australia’s total annual car sales. This was in part supported by growing imports from China as intense domestic competition pushed Chinese manufacturers to seek export markets.
In India, annual sales of all EVs reached a new record of 2.3 million units as electric car sales increased by over 75%. Electric car sales in Southeast Asia more than doubled in 2025, driven by sales in Thailand and Viet Nam. One of Southeast Asia’s largest car markets – Indonesia – also added significantly to the growth, seeing its electric car sales rise by 125%. Electric car markets in Latin America and the Caribbean saw around 70% annual growth, reaching close to 350 000 units in 2025. Sales in Mexico more than tripled, while in Brazil they increased by 40%, building on top of already strong sales growth in 2024. Sizeable growth was also recorded in smaller markets in the region, particularly Ecuador and Uruguay, where electric car sales rose by around 240% and 140%, respectively, in 2025.