IEA: Global EV Sales Top 20M Despite US Decline


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Global electric vehicle sales surpassed 20 million 
units for the first time in 2025 even as U.S. demand weakened sharply following 
the elimination of federal tax credits, according to the International Energy 
Agency reported Wednesday (5/27).

   The IEA said global electric car sales reached more than 20 million units in 
2025, a 20% increase from 2024 levels, representing one out of every four new 
cars sold worldwide. The agency estimated electric vehicles displaced roughly 
1.2 million bpd of oil demand in 2025 as EV adoption accelerated across China, 
Europe and emerging markets.

   China remained the dominant force in the global EV market, with more than 13 
million units sold in 2025, accounting for six out of every 10 EVs sold 
worldwide and 55% of all new car sales in the country, according to the IEA.

   Europe posted one of the strongest rebounds among major markets, with EV 
sales climbing more than 30% to 4.2 million units after weaker growth in prior 
years. The increase was driven by stricter European Union emissions standards, 
lower-priced EV models, tax incentives and increased competition from Chinese 
automakers, the report showed.

   The United States, however, lagged behind global trends as EV sales declined 
slightly in 2025 to around 1.5 million units following major policy changes 
under the Trump administration. The IEA said U.S. electric vehicle sales fell 
sharply in the fourth quarter after federal EV tax credits expired in September 
2025 under the One Big Beautiful Bill Act. During the fourth quarter of 2025, 
EV sales in the U.S. were down 45% from the same period the prior year.

   Despite the slowdown, electric vehicles still accounted for roughly 10% of 
total U.S. auto sales in 2025, the IEA said.

   The report also highlighted rapid EV adoption across emerging economies, 
where sales rose nearly 80% to about 1.2 million vehicles in 2025. Southeast 
Asia more than doubled EV sales, while Latin America posted a 75% increase led 
by Brazil and Mexico. India's EV sales climbed 75% from the previous year, 
though electric vehicles still represented less than 4% of total passenger 
vehicle sales there.

   The IEA said lower-cost Chinese EV exports played a major role in 
accelerating adoption in developing markets, particularly where high fuel 
prices and tax incentives improved the economics of electric vehicles.




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