Global electric vehicle sales surpass 20 million for the first time in 2025: China accounts for 60%, Europe sees strong growth.

Global EV Sales Surpass 20 Million for the First Time, Market Enters a New Phase

In its latest Global EV Outlook 2026, the International Energy Agency (IEA) noted that global electric vehicle sales surpassed 20 million units for the first time in 2025, up 20% from 2024 and accounting for one-quarter of total global new car sales. This marks the fifth consecutive year since 2021 that annual incremental growth has remained at around 3.5 million units. At this point, electrified vehicles account for about 5% of the global vehicle fleet, replacing 1.2 million barrels of oil demand per day.

The IEA analysis suggests that in 2025, the share of battery electric vehicle (BEV) sales in total electric vehicle sales rebounded to 65%, reversing the trend of the previous two years in which plug-in hybrid electric vehicle (PHEV) share was rising. The share of extended-range electric vehicles (EREV), which had grown rapidly in 2024, fell back to below 7%. This shift indicates that against the backdrop of advances in battery technology and increasingly improved charging infrastructure, the pure electric technology route has regained market dominance.

Three Major Markets Diverge: China Leads, Europe Rebounds, the US Faces Pressure

China: Sales Surpass 13 Million Units, Penetration Rate Approaches 55%

In 2025, China's electric vehicle sales exceeded 13 million units, accounting for 60% of global EV sales. Monthly EV penetration exceeded 50% in 11 months of the year, bringing the annual sales share to nearly 55%. As of the end of 2025, the total number of electric vehicles on Chinese roads was approximately 44 million, accounting for about 13% of the national vehicle fleet, up from 10% in 2024.

Growth momentum came partly from the trade-in policy launched in April 2024, which offered a subsidy of RMB 20,000 for purchasing electric vehicles. In July 2025, some cities temporarily suspended the program due to funding issues, causing a 10% month-on-month decline in sales that month, but the overall policy still effectively stimulated the market. Compared with the annual growth rate of over 75% during 2020-2024, growth slowed to less than 20% in 2025, indicating that China's EV market is transitioning from ultra-high-speed growth to a mature and stable phase.

Europe: New Carbon Emission Regulations Drive Strong Sales Rebound

In 2025, European electric vehicle sales grew by 30%, surpassing 4 million units. The European EV market had stalled in 2024, and the implementation of stricter EU CO₂ emission standards broke the deadlock. IEA data shows that the phased tightening of EU carbon emission regulations directly prompted automakers to accelerate the electrification transition, particularly driving an increase in registrations of battery electric models.

US: Share Remains Below 10%, Policy Fluctuations Have a Notable Impact

In 2025, the US electric vehicle sales share remained largely stable at slightly below 10%. Despite multiple policy adjustments, including the elimination of the federal tax credit, which caused a notable decline in fourth-quarter sales, the overall annual share did not fall sharply. The IEA noted that uncertainty in the US market is becoming an important factor affecting the pace of global EV growth.## Emerging Markets Become New Growth Engine, Chinese-Made EVs Accelerate Global Penetration

Notably, beyond the three major markets of China, Europe, and the United States, more than 2 million of global EV sales in 2025 came from countries in Latin America, the Asia-Pacific, and the Middle East. These markets are rapidly crossing the 10% sales share threshold.

Take Nepal as an example: its EV sales share has risen significantly since 2020, with the key reason being a surge in EV imports from China. Leveraging the cost advantages of scale and mature supply chains, Chinese-made electric vehicles are helping emerging markets skip the traditional internal combustion engine development stage and enter the electrification era directly. The IEA specifically notes that the number of countries with an EV sales share above 10% is growing rapidly, and the global EV adoption curve is transitioning from early adopters to the mass market phase.

Industrial Chain Impact: Battery Supply Chain and Charging Infrastructure Face Structural Upgrades

Global EV sales surpassing 20 million units has placed higher demands on the power battery industrial chain. IEA data shows that in 2025, the share of battery electric vehicles rebounded, further driving demand growth for high-energy-density batteries and fast-charging technology. At the same time, the geographic diversification of the global battery supply chain is accelerating—China still dominates battery production capacity, but the United States, Europe, and Southeast Asia are reducing single-source supply risks through localized production and raw material refining initiatives.

Regarding charging infrastructure, with EVs accounting for about 5% of the total global vehicle fleet, the efficient use of public charging networks has become a key issue. The IEA emphasizes that fast-charging technology, V2G (vehicle-to-grid), and smart charging scheduling are becoming core hubs for the integration of transportation and energy systems. Driven by both grid load management and renewable energy integration, EV charging is no longer just an end-use energy replenishment behavior, but an important flexible resource participating in the dynamic balance of the power system.

Challenges and Risks: Subsidy Phase-Outs, Trade Barriers, and Grid Carrying Capacity

Despite strong growth momentum, the global EV industry still faces multiple challenges: 1. Uncertainty of Policy Phase-out: The temporary suspension of China's trade-in subsidies and the U.S. cancellation of tax credits both demonstrate the high sensitivity of the EV market to policy. The continued tightening of European carbon emission regulations is a rigid constraint, but subsidy reductions in some countries may weaken demand. 2. Trade Barriers and Supply Chain Restructuring: Chinese-made EVs face tariff barriers in some markets, while countries' requirements for localized extraction and processing of battery raw materials (lithium, cobalt, nickel) are driving up the cost of supply chain restructuring. 3. Grid and Charging Load Pressure: The rapid growth of EV ownership is putting pressure on peak loads of local power grids. The IEA warns that if charging infrastructure cannot keep pace with vehicle growth, it will constrain the further adoption of EVs in large cities and among apartment residents. 4. Battery Material Price Volatility: Global prices of key minerals are affected by geopolitical and demand fluctuations, which may slow the downward trend in battery costs, thereby affecting the cost-parity competition between EVs and gasoline vehicles.

Future Outlook: Electrification Enters an Era of Multipolar Growth

The IEA's Global EV Outlook 2026 shows that the global EV market has shifted from single policy-driven growth to a "policy + market" dual-driven model. The maturation of the Chinese market, the rigid constraints of European emission regulations, policy fluctuations in the U.S. market, and the low-cost adoption in emerging markets are together forming a multipolar growth landscape.

In terms of battery technology routes, the rebound in the share of battery electric vehicles indicates that automakers and consumers are paying more attention to charging efficiency and battery range in real-world use, rather than simply upfront cost. The rivalry between lithium iron phosphate and ternary lithium batteries will continue, but the commercialization progress of next-generation technologies such as solid-state batteries will determine industrial competitiveness in the next phase.

In terms of charging infrastructure, ultra-fast charging, integrated solar-storage-charging, and V2G technology will move from pilot projects to large-scale deployment. The competition among global charging standards (such as NACS and CCS) will also affect the ecosystem landscape of the industry chain.

Conclusion

As the latest IEA data shows, global transportation electrification has crossed the critical threshold from 0 to 1 and entered a rapid diffusion phase from 1 to N. Annual sales of 20 million vehicles are not just a numeric milestone; they signify that the entire industry chain—from power batteries to charging networks, and then to the power grid and energy systems—is being restructured around electric mobility. In the next decade, the depth and speed of this energy transition will depend on how major global economies find a new balance among policy incentives, infrastructure development, and supply chain stability.