2025 EV sales predicted to go up by 30%

Despite a year of fluctuating fortunes for the EV market in 2024, the future looks bright for electric vehicles. Analysts at S&P Global Mobility predict a significant surge in EV sales for 2025, and the automotive industry is buzzing with excitement.

S&P Global Mobility forecasts a 29.9% global increase in all-electric vehicle sales, with an estimated 15.1 million EVs hitting the roads in 2025. This impressive growth means a jump in market share from 13.2% to 16.7%. While global light vehicle production is expected to experience a slight dip of 0.4%, the EV sector is defying the trend.

The executive director of S&P Global Mobility, Mark Fulthorpe, admits there is potential trouble ahead. The incoming Trump administration and its proposed universal tariffs will play a big role. "The auto industry continues to navigate uncertain terrain as we enter 2025," says Fulthorpe. "During 2025, the production landscape will change dramatically, as global trade slows, and as retaliatory measures are likely to emerge."

Despite the challenges, the EV market is expected to flourish. China will maintain its position as the world's leading EV market, with a share of 29.7% by the end of 2025. But since its market matures, its year-over-year growth is predicted to be a relatively modest 19.7%.

The United States is expected to witness a bigger increase, with an estimated 36% growth in EV sales, leading to an 11.2% market share by the end of 2025. Central and Western Europe, after facing some setbacks in 2024, will have a strong comeback. S&P projects a 43.4% increase in EV sales, with a market share going up to 20.4%.

But it is India that is set to become the star performer in the EV arena. The analysts predict an astounding 117% increase in EV sales in 2025. This dramatic rise will bring India's EV market share to 7.5%.

These projections paint an optimistic picture for the future of electric vehicles. But as we've seen over the last few years, it's pretty much guaranteed that the road ahead will be bumpy. The potential end of the federal EV incentive in the US will create some trouble for both automakers and consumers.

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