3 min read
Global electric vehicle (EV) and plug-in hybrid sales soared to 1.8 million units in June 2025, marking a 24% increase compared to the same month last year, according to fresh data from independent research firm Rho Motion.
China led the global EV market, with sales jumping 28% to 1.11 million units, driven by strong domestic demand and the dominance of local manufacturers like BYD. Meanwhile, Europe followed closely, reporting a 23% rise with approximately 390,000 units sold, bolstered by generous government incentives in countries such as Germany and Spain and a growing influx of affordable EV options.
Emerging Markets Overtake North America
EV adoption is accelerating in Southeast Asia, Latin America, and other emerging markets, where combined sales climbed 43% to over 140,000 vehicles. This rise now places these regions ahead of North America, which is seeing a worrying decline.
North American sales fell by 9%, slipping to just over 140,000 units. Within the region, U.S. sales dropped 1%, a decline attributed to the recent termination of EV tax credits under a spending bill signed by President Donald Trump. This sudden policy change has dampened consumer confidence and slowed momentum in what was once a rapidly growing market.
Canada also reported sluggish growth, and for the first time, fell behind emerging regions in total EV sales, a sign of shifting global dynamics in EV adoption.
EV manufacturers operating in the U.S. market now face further challenges due to a 25% import tariff, which has prompted multiple automakers to pull their 2025 sales forecasts, Rho Motion noted.
This added cost burden has made EVs less accessible for American consumers and complicated planning for international brands trying to enter or expand in the U.S. market.
China’s Evolving Subsidy Strategy
Despite a reduction in EV subsidies in select Chinese cities, Rho Motion expects a resurgence in government support in the second half of 2025. This could fuel another wave of demand, especially as competition intensifies among domestic and international automakers.
Chinese EV makers like BYD are rapidly expanding their global footprint, not only dominating their home market but also capturing share in Europe and developing economies. European automakers such as Volkswagen and Renault continue to compete through innovation and affordability, helping to maintain Europe’s strong position in the global EV race.
The EV market is growing, but not evenly. While China, Europe, and emerging markets show strong momentum, North America is slipping, facing a mix of policy changes, tariffs, and reduced consumer incentives.
As EV competition intensifies, the second half of 2025 will be a critical test for manufacturers navigating regulatory shifts and regional challenges in a rapidly evolving market.
