China's EV market booms as North America hits the brakes

The global electric car market is growing fast in 2025, but a closer look at the sales numbers reveals a divided landscape. China shatters sales records, Europe maintains a steady pace, but North America's EV adoption has slowed to a crawl.

Through the first five months of 2025, global sales of electric vehicles have soared to 7.2 million units, a 28% increase compared to the same period in 2024. The month of May was particularly strong, with 1.6 million EVs finding new homes worldwide. This impressive global figure masks a more complex reality. The engine of this growth is overwhelmingly located in one country: China.

China is literally lapping the competition. In May alone, Chinese consumers purchased a record-breaking one million electric cars - that's a 33% jump from the previous year and a 10% increase from April. This is only the second time the nation has surpassed the million-unit monthly milestone, first achieved in August 2024. Year-to-date, China accounts for 4.4 million of the total 7.2 million EVs sold globally.

The EV market in Europe tells a story of steady and encouraging progress. With 1.6 million vehicles sold from January to May, the continent has seen a 27% year-to-date increase. Germany and the United Kingdom are the main drivers here, with growth rates of 45% and 32%, respectively.

The surprise is the enthusiastic adoption in Southern Europe. Spain has witnessed a remarkable 72% surge in EV sales this year, with Italy following closely behind at 58%. Germany is also looking at a potential sales boom, having recently introduced new incentives targeting commercial fleets, which represent more than half of its auto market.

The narrative shifts dramatically when looking at North America. The United States, Canada, and Mexico have seen a paltry 3% growth in EV sales so far this year, with just 700,000 EVs sold. The primary culprit for this sluggish performance is Canada, where a pause on federal EV subsidies resulted in a steep 20% drop in sales.

The U.S. market is barely treading water with 4% growth, propped up by a federal tax credit that is now expected to continue through the end of the year. The future of this crucial incentive is uncertain, with the possibility of it being phased out in 2026 or eliminated entirely by 2027, which could dampen consumer interest.

Via 1 | Via 2