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Global Electric Vehicle Market Surges in First Half of 2025
The electric vehicle (EV) market is experiencing a significant surge, with robust sales growth, regional leadership by China and Europe, and innovations in battery technology driving adoption.
Rapid Global Growth
In the first half of 2025, global EV sales reached 9.1 million units, a 28% increase year-on-year. BEV and PHEV sales in China surged by 32%, Europe by 26%, and even Rest of World markets grew by 40%. North America’s growth was more modest at 3%.
Regional Leaders
China leads global EV sales with 5.5 million units sold H1 2025, accounting for more than half of worldwide EV sales. Europe follows with 2 million units. Emerging markets are also seeing faster EV adoption than many developed countries, supported by increasing manufacturing capacity and policy experimentation.
Europe’s Market Dynamics
The European EV market growth is driven by increased availability of small-segment BEVs and a push to meet emissions targets. PHEV sales in Europe grew by 27%, partly due to Chinese manufacturers leveraging PHEVs to circumvent BEV tariffs. Spain’s EV sales jumped 85% thanks to strong government incentives, while Germany and the UK posted 40% and 32% growth, respectively. France saw a decline due to subsidy cuts.
Battery Market Growth and Technology
The lithium-ion battery market is expanding rapidly, fueled by EV demand. The EV battery market was worth about USD 67.5 billion in 2024 and is projected to rise to USD 405.3 billion by 2033 with a CAGR of nearly 20%. There is increasing investment in solid-state batteries, recycling, and localized battery production to meet demand and reduce environmental impact.
Key Players
China dominates global sales and manufacturing for BEVs and PHEVs. European automakers, such as Renault, are notable contributors to the expanding BEV segment in Europe. North American manufacturers and battery producers, like Tesla and Xiaomi, are important players focusing on innovation and localized production.
Summary Table of Regional EV Sales Growth (H1 2025 vs H1 2024):
| Region | EV Sales (millions) | Growth Rate (%) | |-----------------|---------------------|-----------------| | Global | 9.1 | +28 | | China | 5.5 | +32 | | Europe | 2.0 | +26 | | North America | 0.9 | +3 | | Rest of World | 0.7 | +40 |
Top-Selling EVs
The Tesla Model Y remained the most popular BEV worldwide in the first two months of 2025, with 114,473 deliveries and a 7.2% market share. The Geely Geome Xingyuan finished fourth, with 28,588 units. The Wuling Mini, a BEV, had 22,069 deliveries, representing a growth of 74.5% year on year but its lowest registration total since July 2024. The Xiaomi SU7, another BEV, accounted for 3% of all-electric volumes in its 11 month of registrations, with 23,751 units.
The BYD Song Plus led the global PHEV market in February, with 22,441 deliveries and a 5.2% market share. The BYD Seagull moved up two spots into the top 10 BEVs, while the Wuling Bingo entered the top 10.
Market Trends
Across the first two months of 2025, BEVs saw a 36.1% increase in deliveries, reaching 1.59 million units. PHEVs soared 30.9%, with 944,458 registrations. The demand for batteries, especially lithium-ion, is a critical driver of the EV market’s expansion, emphasizing the interdependence of vehicle sales and battery technology innovation. Policy incentives remain a major factor influencing regional market penetration and growth rates, especially in Europe and emerging economies, where subsidies and local manufacturing attract improvements in EV adoption.
In conclusion, China and Europe are the key players driving global BEV and PHEV market growth, supported by substantial sales increases and policy frameworks. Advances in battery manufacturing and EV technology are central to this growth trend extending into emerging economies and beyond.
- Despite the surging global EV market, the demand for traditional cars still persists, as many consumers are yet to shift towards electric vehicles, becoming a significant aspect of the broader lifestyle choice.
- With the increasing adoption of electric vehicles, technology continues to play a pivotal role, not just in battery innovation, but also in the development of smart city infrastructure, facilitating the integration of EVs into everyday life.
