After a slow 2024, global electric vehicle (EV) sales are recovering with a remarkable surge in early 2025. According to Rho Motion data, around 41 lakh of electrified vehicles, which includes battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), have been sold worldwide in the first quarter.

This marks a 29 per cent jump compared to the same period last year, with China taking the pole position in this global shift toward greener mobility. Interestingly, China continues to be the world’s largest EV market by a wide margin.

Chinese consumers bought an estimated 24 lakh electrified vehicles in the first three months of 2025 alone, a 36 per cent increase compared to Q1 2024. A combination of factors, such as a robust manufacturing ecosystem, consumer incentives, and extensive investment in charging infrastructure have put China far ahead of other regions.

Europe and North America trail behind

Europe maintained strong momentum with 900,000 electrified vehicle sales in Q1, a 22 per cent increase year-on-year. Battery electric vehicles grew by 27 per cent, with plug-in hybrids seeing slower progress at 10 per cent. Italy led the European pack with a 64 per cent spike in EV sales, followed by Germany and the UK with 34 per cent and 42 per cent increase respectively.

North America had more muted growth with approximately 5,00,000 electrified vehicles sold in the first quarter, which is an increase of 16 per cent from last year. The US had approximately 3,00,000 BEV sales, which is an increase of 11.4 percent year-over-year. Threats of new tariff policies under the Trump administration could change these figures and growth potential, particularly with respect to imported vehicles from Asia and Mexico.

Global growth faces policy headwinds

There is currently a surge in global EV sector activity, but it is uncertain how long it will last. The new tariff regime in the US will result in price increases for imported EVs and even ICE vehicles. In addition to this, the removal of EV subsidies in nations such as France has already meant an 18 per cent drop in EV sales there.

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