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Home > Finance > Global EV sales growth likely to slow after 20% jump in rocky 2025, research firm says

Global EV sales growth likely to slow after 20% jump in rocky 2025, research firm says

Published by Global Banking and Finance Review

Posted on January 14, 2026

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Global Electric Vehicle Sales Growth Expected to Slow After 20% Surge

Global Electric Vehicle Market Overview

Jan 14 (Reuters) - Global EV registrations grew 20% last year but are likely to lose pace in 2026, data showed on Wednesday, as a slowdown in China and a relaxation of electrification targets worldwide led in December to the smallest sales increase since February 2024.

Monthly registrations of electric vehicles, including battery electric and plug-in hybrids, dropped further in North America after the end in October of an EV tax credit scheme in the United States, consultancy Benchmark Mineral Intelligence (BMI) said.

WHY IT'S IMPORTANT

Impact of Policy Changes

Radical policy shifts, including U.S. President Donald Trump's U-turn on electrification and a relaxation of emission standards in the European Union, shook the global EV market in 2025 into a "virtually unrecognisable landscape", according to BMI data manager Charles Lester.

Regional Sales Trends

Rising competition in Europe and cooling demand in China are likely to intensify the debate between electrification proponents who emphasise the need to curb planet-warming CO2 emissions, and carmakers who say a quick transition threatens jobs and profit.

BY THE NUMBERS

Global EV registrations, a proxy for sales, rose by 6% to almost 2.1 million units in December, reaching 20.7 million vehicles in 2025, the data showed.

They were up by 2% in China to more than 1.3 million, the lowest year-on-year increase since February 2024, leading to a 17% increase to 12.9 million units in 2025. The country produced 71% of EVs sold worldwide.

North American registrations fell by 39% to just over 100,000 cars sold, following similar declines in October and November at the end of U.S. tax credits. They were down 4% for the entire 2025.

Europe was up by 34% in December to over 450,000 registrations and by 33% in the year, while in the rest of the world sales were up by 41% to over 160,000 units in December, and by 48% in 2025.

Future Projections

WHAT'S NEXT

BMI expects 23.9 million EVs will be sold globally this year, a 15.7% increase, with growth sharply accelerating in China to 21% and slowing in Europe and the rest of the world to 15% and 26%, respectively. It forecasts a sharper decrease of 23% in North America due to a 29% slump in the U.S.

(Reporting by Alessandro Parodi in Gdansk, Editing by Tomasz Janowski)

Frequently Asked Questions about Global EV sales growth likely to slow after 20% jump in rocky 2025, research firm says

1What is an electric vehicle?

An electric vehicle (EV) is a car or truck that is powered by electricity instead of gasoline or diesel. EVs use electric motors and batteries to operate, offering a more sustainable alternative to traditional vehicles.

2What is a sales increase?

A sales increase refers to the growth in the number of products sold over a specific period. It is often expressed as a percentage compared to previous sales figures.