U.S. EV sales fall 2% in 2025 as global market grows 20%
14 reported
Global electric vehicle sales grew 20% in 2025 to exceed 20 million, with one in four new cars sold worldwide now electric, according to the International Energy Agency’s annual outlook released on May 20. In the United States, however, EV sales fell 2% last year, according to Cox Automotive’s Kelley Blue Book. Rising fuel costs worldwide pushed consumers toward EVs at record rates, and U.S. gasoline prices topped $4 a gallon in April. But U.S. consumers had fewer EV options, especially in the affordable category, as Chinese cars face 100% tariffs and a separate 25% duty on all imported vehicles. A $7,500 rebate that reduced the purchase price of new EVs for U.S. buyers expired last September. Fourth-quarter U.S. EV sales in 2025 fell 36% year on year, and dropped 27% in the first quarter of 2026, Kelley Blue Book reported. By contrast, the European Union and Canada opened their markets to Chinese EVs, and EV sales rose more than 30% in Europe, 80% in Asia-Pacific markets outside China, and 75% in Latin America in 2025.
What’s reported
Global EV sales grew 20% in 2025 to exceed 20 million, per the IEA’s annual outlook released May 20.
U.S. EV sales fell 2% in 2025, per Cox Automotive’s Kelley Blue Book.
U.S. gasoline prices topped $4 a gallon in April.
Chinese cars face 100% tariffs in the U.S., plus a separate 25% duty on all imported vehicles.
A $7,500 EV rebate for U.S. buyers expired in September 2025.
U.S. fourth-quarter 2025 EV sales fell 36% year on year; first-quarter 2026 sales dropped 27%.
Several major U.S. automakers saw quarterly EV sales decline 60% to 70%.
EU allowed Chinese EV sales in January 2026 with a minimum price; Canada allowed imports from March 2026 at 6.1% tariff with a 49,000-vehicle yearly cap.
EV sales rose more than 30% in Europe, 80% in Asia-Pacific outside China, and 75% in Latin America in 2025.
About 30 countries recorded an all-time high in monthly EV sales in March 2026.
Brent crude averaged $117 a barrel in April, trading between $96 and $110 through May.
In the UAE, petrol prices rose 45% between March and May; BYD distributor Al-Futtaim Electric Mobility said inquiries almost doubled.
EVs accounted for 5.8% of new U.S. vehicle sales in the first quarter of 2026, roughly half the share six months earlier.
Stellantis partnered with Chinese firms Leapmotor and Dongfeng to develop lower-cost electric models.
Key figures
Egor Prokhodtsev, principal research analyst for transportation and mobility at Wood Mackenzie
David Hart, senior fellow at Council on Foreign Relations
Stephen Ezell, vice president for global innovation policy at Information Technology and Innovation Foundation
Lei Xing, founder of AutoXing, a Chinese auto industry consultancy
Sources: restofworld.org
