Tesla might be struggling to see sales rise, but Global EV sales are going strong in 2025. New data from the Rho Motion research firm revealed that the number of electric vehicles sold worldwide in the first half of this year is 9.1 million.
The growth marks a strong 28% increase from last year. What’s more surprising is the fact that this time, China, along with Europe, is leaving North America way behind on the tally.
Don’t get us wrong, the US still is the biggest market for EVs, but the growth is flowing more in other countries. What do you think is the reason? Elon Musk’s focus on Robotaxi, AI robots, or partnership with Trump? Could the new tax bill be a reason?
Here’s everything you need to know about the new dynamics!
China Leads the Global Market
China continues to dominate the global EV market, which now accounts for 5.5 million of the total 9.1 million vehicles sold worldwide. That’s more than half of all EVs sold.
China’s EV sales also grew by 32% from the first half of 2024 to this year. Charles Lester, Data Manager at Rho Motion, aptly explains that more than half of all EVs sold worldwide are purchased in China. He said that more than half of all cars sold in China are also electric.
Although it is true that several local EV subsidies by Chinese cities are now gone, they expect fresh government support in the coming months. Having some sort of benefit or motivation could keep the strong sales momentum going.
Europe Sees Steady Growth
Europe too saw a solid growth in EV sales, with 2 million units sold in the first half, which is a 26% increase year-over-year. Here’s a bit broader view of the countries that stood out:
- Germany grew 40%
- The UK rose 32%
- Spain jumped 85%, boosted by the extension of the MOVES III subsidy program
- France went the other direction, with EV sales falling 13% after subsidies were cut back
Plug-in hybrid vehicles also gained popularity in Europe, growing 27% from last year. Many Chinese automobile companies are focusing on hybrids more now to get tariff benefits instead of fully electric cars in the EU, and it seems to be working.
Global EV Sales Snapshot: Where’s the USA?
The U.S. is still a major EV market, but it’s growing slowly at just 6% so far in 2025. That could change before September 30, when the $7,500 EV tax credit ends under the new “Big Beautiful Bill.” A last-minute sales rush is possible. However, we won’t be so sure with other factors in mind.
Meanwhile, in Q1, non-Tesla EV sales in the U.S. rose 32%, while Tesla’s dropped 9%. Since 2021, non-Tesla sales have grown 472%, showing that American drivers are starting to explore more EV options.
Tesla still leads in sales with the Model Y still being the bestseller, but other brands are catching up. The US, Canada, and Mexico combined saw an increase of just 3% in the first half. Here’s how the numbers break down:
- United States: Up 6%
- Mexico: Up 20%
- Canada: Down 23%
Beyond the major markets, EV sales in the rest of the world rose 40%, reaching 700,000 units in the first half of 2025. These countries are still a smaller market, but their growth is a clear sign of the global shift in EV expansion.
A Record-Breaking June
June 2025 was a standout month for electric vehicles. A total of 1.8 million EVs were sold worldwide, which is the highest monthly sales total of this year. Here’s how June looked by region:
- China: 1.11 million sales, up 28%
- Europe: 390,000 sales, up 23%
- North America: 140,000 sales, down 9%
- Rest of the world: 140,000+ sales, up 43%
Can U.S. EV Sales Trickle Turn Into a Flood For Tesla?
For a long time, buying an EV in the U.S. mostly meant buying a Tesla. It had the hype, the head start, and Elon Musk was always the center of it all. But things have now shifted, especially after Musk’s public support for Donald Trump, which turned off some potential buyers. The deadline can cause a temporary jump, but it is unlikely that the trickle could last longer for Tesla.
Global EV sales grossing 9.1 million in the first half of 2025 is certainly a strong 28% jump from last year. China and Europe are leading the way into EV markets. The U.S. is still in the fair, but growth is a bit slow, and Tesla is no longer the only major player.
Tesla is now facing real competition amidst new players and shifting public sentiment. The upcoming end of the $7,500 tax credit may trigger a short-term sales bump, but whether that puts the American market as the leader in growth remains to be seen.
