July 15, 2025 Market research firm Rho Motion reported that global electric vehicle (EV) sales, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), reached 1.8 million units in June 2025, a 24% year-on-year increase, driven primarily by sustained electrification efforts in China and Europe.

Key Regional Performances

• China (world’s largest EV market):
  • June sales surged 28% YoY to 1.11 million units.
  • Year-to-date (Jan-Jun 2025) growth at 32%, despite cooling market sentiment.
  • Subsidy expiration in some cities raised concerns over H1 slowdown, but new funding expected in H2 to sustain growth.

Rush hour in China

• Europe:
  • Sales jumped 23% YoY to ~390,000 units in June.
  • Strong retail and fleet incentives in Germany and Spain, coupled with increasing affordable EV models, supporting demand.
  • Chinese brands like BYD gaining market share, challenging legacy automakers (VW, Renault).
• North America:
  • Sales fell 9% YoY to just over 140,000 units, marking the region’s first drop below the “Rest of World” segment.
  • U.S. sales declined 1%, attributed to:
    • Early cutbacks in EV tax incentives under President Trump’s spending bill.
    • 25% import tariffs on foreign vehicles, pressuring global automakers’ 2025 forecasts.
  • Canada’s sharp decline dragged down regional performance.
• Rest of World (Southeast Asia, Latin America, etc.):
  • Sales skyrocketed 43% YoY, exceeding 140,000 units, outpacing North America for the first time.

Industry Insights

Charles Lester, Data Manager at Rho Motion, noted:

• China’s H2 outlook remains strong despite subsidy concerns, with new funding likely to drive year-end growth.
• Europe’s momentum hinges on policy support and affordable models, though Chinese competition is intensifying.
• North America’s struggles reflect policy volatility and market protectionism, with no quick recovery expected.

Rho Motion maintains its projection for continued global EV expansion in 2025, albeit with diverging regional trajectories.

Source: https://rhomotion.com/news/global-ev-sales-up-28-in-2025-2/

EDITOR’S NOTE

China’s NEV market isn’t just leading in 2025 – it’s laying the foundation for global EV dominance over the next decade. While Europe cautiously navigates between ambition and practicality, and America backpedals on electrification support, China’s long-term policy consistency stands in stark contrast.

This divergence reveals a fundamental truth: winning the EV race requires more than just advanced technology – it demands sustained political commitment. China gets it. The question is – who else will stay the course?