EV Makers Worldwide Push Sales Growth with New Models and Lower Prices

NEW YORK, Aug. 20, 2025 — While Electric Vehicle (EV) global sales during 2024 recorded a growth of more than 25 percent, with electric car sales touching 17 million, this passenger vehicle segment is expected to cross sales of 20 million in 2025, representing one-quarter of total car sales.

The first two quarters of the ongoing fiscal year has been eventful for the EV industry, with China leading the pack, propelled by a massive surge in production by EV car makers including Xiaomi and BYD.

Chinese automotive companies involved in the electric vehicle industry have invested more in foreign markets than back home for the first time in 2024.

While other major Chinese electric vehicle makers, including Li Auto and Nio, reported a drop in July deliveries, Xpeng rolled out a record number of EVs in July. The silver lining was also in Xiaomi, Leapmotor and Aito, which recorded month-over-month growth in July.

In US, the electric vehicle market experienced a significant surge in July as consumers rushed to avail the benefit of a federal tax credit set to expire on September 30.

According to a new analysis from Cox Automotive, both new and used EV sales saw a considerable boost in the US in July.

Analyst reports based on region-wise performance have also revealed that electric car sales in Europe stagnated in 2024 as policy support waned in major car markets. However, Europe's electric vehicle market is set to experience significant growth in 2025, driven by regulatory pressures, increasing consumer adoption, and automobile makers rolling out an extensive range of EV models.

Global EV Trends You Must Know

China’s EV Price War: The electric vehicle segment in China has ducked the slow economic growth and subdued consumer demand. Fueled by Tesla, China’s EV market has a price war playing out for the last two years. In May this year, BYD announced almost 30 percent discounts across several of its lower-end battery-only and hybrid models.

Other EV players soon followed suit, creating a situation that average car retail price in China has fallen by around 19 percent over the past two years, as per a Nomura report, citing industry data from Autohome Research Institute.

Mixed Outlook: Chinese electric vehicle maker Xpeng on Tuesday forecast third-quarter revenue would double, upbeat on surging deliveries of its cars despite challenging economic conditions.

Notably, Tesla's vehicle deliveries in the second quarter of 2025 amounted to around 384,120 units. Quarterly deliveries decreased by around 13 percent during the second quarter of 2025, compared with the second quarter of 2024, as per Statista data.

Country-wise Growth Prospectus: In its annual Electric Vehicle Outlook (EVO), BloombergNEF has predicted nearly 22 million battery electric and plug-in hybrid vehicle sales this year, up 25 percent from 2024, as the cost of lithium-ion batteries falls and automotive companies ramp up production of more affordable EV models.

China accounts for nearly two thirds of those sales, followed by Europe at 17 percent and the US at 7 percent. Further, plug-in electric vehicles are set to account for one in four vehicles sold globally this year, a remarkable growth from just a few years ago when less than 5 percent of global vehicle sales were electric vehicles.

How Do Analysts See EV Market in 2025?

The growth rate in electric cars for full year 2025 is expected to increase by 25 percent globally, which is similar to the growth rate from the 2024. In times of economic and policy uncertainties, sales volumes may be impacted but more than one in four cars sold in 2025 is expected to be electric.

Leveraging the strong sales in the first quarter of 2025, China is expected to sell over 14 million electric cars across the full year, more than were sold globally in 2023.

Sales of both electric and conventional cars are led by the extension of the trade-in scheme for older vehicles. The sales share of electric cars in China is expected to reach around 60 percent in 2025.

In March this year, the European Commission announced that more leeway would be given to OEMs in meeting the 2025 CO2 targets for cars and vans.

The new phase of the CO2 targets in the European Union is expected to boost electric car sales, although the new flexibilities mean OEMs have less of an incentive to bring lower-priced electric cars to market this year.

The US electric vehicle market size was estimated at $131.3 billion in 2024. As per industry data, the market is expected to grow from $139.6 billion in 2025 to $439 billion in 2034, at a CAGR of 13.6 percent.

Electric car sales in Europe stagnated in 2024 as policy support waned in major car markets. However, Europe’s EV market is set to experience significant growth in 2025.

Inputs from Saqib Malik

Editing by David Ryder