Global electrified vehicle sales grew 29% in Q1 2025

Rho Motion, a leading EV research house, revealed that 1.7 million electric vehicles were sold globally in March 2025, with 4.1 million sold in Q1 2025. The EV market grew by 29% in March 2025 compared to March 2024 and increased by 40% compared to February 2025. For Q1 overall, the growth rate was also 29%.

Rho Motion Data Manager, Charles Lester: “This quarter, while turbulent, has seen a strong growth rate globally for the EV market. Some countries, such as the UK, had a record-breaking March as drivers continue to go electric. Removing subsidies in France, on the contrary, has shrunk sales, down 18%.”

“Meanwhile, in North America, forecasts are struggling to keep up with the rate of policy announcements under the current White House administration. What is sure is that the electric vehicle market is already struggling to compete with ICE in terms of cost, so reductions in subsidies and hefty tariffs for a very international supply chain are guaranteed to have a cooling effect on the industry,” he added.

The big three

Europe, North America, and China are the biggest EV markets worldwide. A quick overview illustrates this: globally, 4.1 million EVs were sold (+29%), 2.4 million (+36%) in China, 0.9 million (+22%) in Europe, 0.5 million (+16%) in North America, and 0.3 million (+27 %) in the rest of the world.

Europe

The European EV market has grown 22% YTD, with BEVs growing 27% and PHEVs growing 10%. BEV sales in several countries are growing fast, with BEVs in Germany up 37%, Italy up 64%, and the UK growing by 42%.

The UK recorded EV sales in March 2025, with over 100,000 units sold for the first time. Due to the new registration plates, a large volume of vehicle sales in the UK is expected in March (and September). However, the UK market still grew by 41% in March 2025 compared to March 2024.

The French market remains down at -18 %, a direct result of reduced available incentives, with BEVs down 5% and PHEVs down 47%.

North America

The North American EV market (US, Canada, and Mexico) had a strong Q1 2025, growing by 16% compared to Q1 2024. In February, President Trump announced a 25% additional tariff on imports from Canada and Mexico, and then in March, a 25% tariff on all countries’ imports of automobiles and certain automobile parts, with importers of automobiles under the United States-Mexico-Canada Agreement (USMCA) able to certify their US Content and systems so that the tariff will only apply to the value of their non-US content.

In 2024, around three-fifths of EVs sold in the USA were domestically produced. However, most EV sales are manufactured in Japan, Korea, and Mexico. OEMS may be able to absorb some of the tariffs.

However, the levy will likely lead to a rise in price for US consumers in both the ICE and EV markets. The landscape for the total passenger car market will change due to the tariffs, especially from automakers in Korea and Japan, as well as US automakers operating in Mexico, that export a significant number of affordable models to the US market each year.

China

The Chinese market increased by 36% in Q1 2025 compared to the previous year. EV sales almost reached one million in March 2025, a feat first achieved in August last year.

The ongoing tariff war between China and the US will have a limited impact on EV sales due to the small number of EV sales between the two countries. Tesla’s Model S and Model X were exported from the US to China in low volumes. Due to the current tariffs, the price of these Tesla vehicles would almost double, so Tesla has decided to stop importing them in China.

It is difficult to predict the effect of the current tariff war on EV sales throughout the year. The American customer will probably feel it the most, followed by some European manufacturers, which sell several EVs manufactured elsewhere in the US. The direct consequences in China should be reduced, and in Europe, the arrival of more affordable BEVs could have a positive influence.