Global EV sales hit record high in Q3 2025 as China and Europe drive a rapid market shift
Driven by national policies, cheaper models, and better charging, EVs are moving firmly into the mainstream.
• Global BEV sales grew 35% in Q3 2025, reaching a record 21% share of all new vehicles.
• China led with over two million BEVs sold, driven by strong incentives and low-cost models.
• Europe saw a 32% rise in BEV sales, with Germany’s 45% growth and the UK holding a 23% BEV market share.
Across the globe, electric vehicles (EVs) are no longer niche products. In Q3 2025, total battery electric vehicle (BEV) sales rose 35% year-on-year, with more than one in five new vehicles sold globally being battery electric, according to PwC. National policies have been a major force behind this rise, while expanding model availability, more affordable options, and improved charging infrastructure have further strengthened consumer demand.
China stands out as the clearest example. Over two million BEVs were sold in Q3, giving the country a 34% market share. This growth is largely due to state-led incentives, including government subsidies for new energy vehicles (NEVs), exemptions from taxes, and restrictions on internal combustion engine (ICE) license plates encouraged first-time buyers to choose EVs.
These policies also made affordable, entry-level BEVs attractive, which contributed to a 6% year-on-year decline in PHEV sales as consumers increasingly skipped hybrids in favor of fully electric vehicles.
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Europe Pushes Forward Through Regulation
Moving from China’s incentive-driven model to Europe’s rule-based structure shows how different policy approaches lead to different growth rates in EV adoption. Europe’s largest markets, Germany, the UK, France, Spain, and Italy, recorded a combined 32% increase in BEV sales in Q3 2025.
Germany led the pack, with a 45% year-on-year growth, reflecting a consistent domestic push with both incentives and strong EV model availability. The UK, while growing more moderately, has the highest BEV share among these top five countries at 23%, largely due to the ZEV Mandate, which requires 28% of new vehicles sold to be zero-emission.
Spain’s BEV sales doubled compared to last year, with BEV market share now at 11%, benefiting from cheaper EV models and improving charging infrastructure. Italy lagged at a 5% market share, reflecting slower adoption of new EV models and less aggressive government incentives. France saw moderate growth in BEV sales, rising 16% year on year, as consumers gradually shifted away from ICE vehicles in response to stricter emissions regulations and expanding EV incentives.
PHEVs in these markets grew 65% year-on-year, except in France, where they declined 8%, showing that hybrids still play a strategic role for automakers in meeting CO2 targets ahead of 2026 regulatory changes. Meanwhile, ICE vehicle registrations fell across all top-five markets, with France recording the sharpest drop at 27%, underlining the shift in consumer preference.
In smaller European markets, Denmark experienced a 43% year-on-year increase in BEVs, with a 70% market share of all new vehicles, second only to Norway at 97%. Sweden recorded the highest PHEV share at 27%, highlighting how policy, incentives, and infrastructure can shape adoption differently across countries.
The United States Leans on Affordability and Credits
The effect of policy becomes even more visible when looking at the United States. The U.S. BEV market grew 22% in Q3 2025, reaching a 10% market share, driven largely by consumers rushing to benefit from federal tax credits before they expired. This deadline produced a surge that automakers quickly responded to with more affordable line-ups.
GM and Hyundai, for example, grew their Q3 2025 EV sales more than sevenfold and over 100-fold, respectively, since 2015, as both introduced multiple new models under $50,000. VW’s EV sales nearly tripled over the same period. Surveys now show that nearly two-thirds of American consumers plan to buy an EV within five years, indicating that incentives can spark momentum that continues even after the policy ends.
Elsewhere in Asia, national policy continues to shape very different outcomes. South Korea’s 86% rise in BEV sales was fuelled by strong subsidies and the rapid expansion of charging stations, pushing its market share to 18%. Japan, however, remains dominated by hybrids. With BEVs and PHEVs making up just over 3% of new sales, the country’s slower policy shifts and long-standing consumer preference for hybrid technology have kept full electrification at bay.
David Adubiina
When Policy Shapes Competition
Comparing these regions highlights a deeper pattern: national strategies are determining not just sales, but competitive advantage. China’s flexible, incentive-driven approach contrasts with Europe’s regulatory-heavy strategy.
Europe aims to ban ICE vehicles from 2035 and meet strict CO2 limits, but such top-down mandates can slow decision-making and consumer certainty. China instead uses subsidies, tax exemptions, and licensing policies to encourage adoption. Evidence from China’s rapidly rising BEV share shows that incentives can accelerate market growth more efficiently than strict bans alone.
In the US, policy uncertainty has led some automakers to scale back EV investment despite strong consumer demand. The Ford Mustang Mach-E recently outsold its petrol counterpart 2-1, showing that market appetite is growing regardless of temporary policy gaps. Manufacturers that fail to keep pace risk losing ground to rivals in Europe, China, and South Korea, where national policies are accelerating electrification with far greater consistency.
Does the Future Belong to Policy-Backed Innovation?
Even with incentives tapering off in some regions, the global direction of travel is clear. Falling battery costs, expanding model availability, and steady government commitments point to a future where EVs become the default choice.
The automakers that combine innovation with affordability, and operate in environments where national policy supports long-term investment, are best positioned to lead the next decade of mobility. Those who withdraw risk being left behind as electrification reshapes the automotive landscape.
Henry Chikwem
