North America fell far behind China and Europe in terms of EV adoption in the first part of 2025 amid declining government incentives and anti-electrification policies in the US, but interest in EVs is on a roll globally.
According to UK market research firm Rho Motion, worldwide EV sales jumped 21% between July 2024 and July 2025, topping 10.7 million in the first seven months of the year.
Europe and China led the charge. Sales in China hit 6.5 million, a 29% year-to-date increase. It’s down month-over-month, but so are overall passenger car sales, Rho Motion says.
Meanwhile, EV sales in Europe have jumped 30% to 2.3 million this year. Some European markets performed particularly well, including Italy and the UK, which jumped 40% and 30%, respectively, though France had an 11% year-on-year decline.
Though EV sales have continued to rise in North America, sales were comparatively meager, rising just 1.0 million, a 2% increase. Rho Motion attributes the poor performance to the “multi-billion-dollar hit” from tariffs, partially offset by reduced requirements to purchase ZEV credits.” However, the research firm did suggest that Ford’s plans to launch its “Universal EV Platform,” as well as a $30,000 electric midsize pickup with LFP batteries in 2027, could boost sales.
EV sales outside of China, Europe, and North America rose fastest in relative terms, jumping 42% in the first part of 2025. Absolute numbers were less impressive, as only 0.9 million EVs were sold. It’s important to note that countries like China have impressive subsidies in place for those willing to switch to EVs. But American EV buyers haven’t been nearly so lucky.
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A $7,500 federal EV tax credit, for example, ends on Sept. 30, 2025, as part of Trump’s Big Beautiful Bill. “A short-term boost is expected in Q3 ahead of the 30 September 2025 expiry of the IRA consumer tax credit, followed by a likely slowdown in demand,” Rho Motion says.
The Transportation Department has also moved to dismantle plans for a nationwide charging network, though in June, a federal judge in Washington state ordered the Trump administration to resume distribution of funds to build EV chargers.
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About Will McCurdy
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