Electric vehicle sales surge as gas cars decline globally

The automotive industry is undergoing a remarkable transformation, highlighted by electric vehicles (EVs) making up one in four new car sales globally in 2025. This shift marks a significant transition in consumer preferences and advancements in technology, indicating that electric mobility has moved beyond niche status to mainstream adoption.

Norway stands out in this evolving landscape, with over a third of its car fleet now composed of electric vehicles, representing the highest percentage globally. Denmark follows, being the only EU country where electric vehicles account for more than 20% of its total car stock, driven by robust tax incentives. In contrast, China, while having the largest number of EVs in total, has only about 13% of its car stock classified as electric. The European Union averages around 5%, showcasing the considerable gap between leaders and their neighbors.

In terms of new sales, Norway again leads, with nearly 97% of newly sold cars in 2025 being electric, establishing gas-powered vehicles as a rare choice. Vietnam is notable in Southeast Asia, with electric vehicles comprising nearly 40% of its new sales, primarily due to the efforts of local manufacturer VinFast. The United Kingdom, Germany, and Uruguay are also making significant strides, each exceeding 30% in electric vehicle sales.

When considering raw sales volume, China dominates the market with over 13 million electric cars sold in 2025, accounting for approximately six out of every ten EVs sold across the globe. The United States ranks second with around 1.5 million sales, while Germany achieves about 850,000. Emerging markets like Brazil, India, and Thailand have each surpassed the milestone of over 100,000 electric cars sold.

Rapid growth in electric vehicle sales is evident in several countries. For example, Mexico tripled its electric car sales within a single year, reflecting the fastest growth rate among major markets. Poland follows closely with a remarkable 125% increase, and Vietnam has more than doubled its previous year's sales. Spain, Thailand, and Italy are also showing impressive growth, indicating these markets are gaining momentum and could soon enter the global top ten for absolute sales.

Price continues to be a pivotal factor in EV adoption. In 2025, Mexico saw electric car prices drop to levels comparable with conventional vehicles, largely due to an influx of competitively priced imports from China. Turkey and Brazil also reported reductions in EV price premiums, signaling greater accessibility. However, challenges remain in countries like Indonesia and Malaysia, which still face higher price premiums of 40% and 65%, respectively.

The second-hand electric vehicle market plays a crucial role, as many consumers opt for used cars. Germany leads Europe with approximately 400,000 used EV sales in 2025, representing over 6% of its entire used car market. In contrast, the United States sold fewer than 400,000 used EVs, accounting for just 2.5% of its used car sales. Notably, around 40% of used EVs sold in the U.S. were priced below USD 25,000, illustrating the potential for affordable electric car ownership.

In Africa, electric vehicle adoption remains limited but is gradually increasing. Egypt recorded the highest sales on the continent for 2025, with around 7,900 electric cars sold, followed by Morocco and South Africa. Together, these three nations accounted for nearly 70% of electric car sales in Africa last year, marking a significant rise from around 4,000 total sales just two years earlier.

This substantial growth in electric vehicle adoption signals a pivotal shift in the automotive landscape, prompting various market players to adapt and innovate. The implications extend across supply chains, particularly within the electric vehicle traction motor market, essential for the performance and efficiency of electric vehicles. For further insights, refer to the Global Electric Vehicle Traction Motor Market.

As the trend towards electrification continues, businesses and investors should monitor how these changes unfold across various regions. The electric vehicle market is dynamic, and identifying emerging markets and technologies will be crucial for future success.