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EV Growth Slows: China, US Policy Shifts Hit Sales
14 Jan
Summary
- Global EV registrations grew 20% last year but lost pace in December.
- China's EV sales growth slowed to 17% in 2025, producing 71% of global EVs.
- North American EV sales dropped 39% in December due to US tax credit changes.
Global electric vehicle registrations experienced a 20% rise last year, yet growth momentum slackened as 2025 concluded. December saw the smallest sales increase since February 2024, attributed to policy adjustments in major markets. China, despite its dominant 71% share of global EV production, recorded its slowest sales growth in over a year, contributing to a 17% overall increase for 2025.
North America faced a significant downturn, with a 39% drop in EV registrations in December alone. This decline is directly linked to the expiration of the U.S. EV tax credit scheme in October. In contrast, Europe continued its upward trend with a 34% increase in December registrations, and the rest of the world saw substantial growth.
Looking ahead, experts predict a 15.7% global EV sales increase for the current year, with sharp acceleration expected in China. However, growth is forecast to slow in Europe and other regions, while North America anticipates a steep contraction driven by a significant slump in U.S. sales.
