Annual global EV sales climb 20%

Global sales of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) hit 20.7 million last year for the light-vehicle sector, an increase of 20 per cent from 2024.

Registrations for China jumped 17 per cent to 12.9 million and activity in Europe rose 33 per cent to 4.3 million, according to new data from Benchmark Mineral Intelligence.

However, the North American market slipped four per cent year-on-year to 1.8 million units, while the rest of the world grew 48 per cent to 1.7 million annual BEV and PHEV sales.

The latter total included Japan, where the EV market grew by six per cent year-on-year. Benchmark says the limited uptake of EVs in Japan was because of the strong presence of hybrid EVs. 

“Japan’s EV penetration remains at three per cent for the fourth consecutive year. In contrast, the South Korean market grew by 50 per cent year-on-year, led by new EV models introduced by domestic OEMs and imported EVs, and government incentives,” it adds.

The worldwide numbers for 2025 were bolstered by 2.1 million such sales in December.

Charles Lester, Benchmark Mineral Intelligence data manager, says: “This time last year few could have predicted the EV market upset that occurred which has resulted in a virtually unrecognisable landscape now as we enter 2026. 

“Globally the EV sales figures have grown by a fifth compared to the previous year, which shows how resilient the market is.

“Looking at Europe, the dark horse has overtaken China as the fastest-growing major region. This is despite weakened car manufacturing targets bookending the year as many had already prepared for the 2025 targets to come into force.

“We do not expect this growth rate to be the same in 2026 as manufacturers focus their efforts on the deadline year, 2027.”

Lester adds North America’s performance comes as no surprise after a tumultuous past 12 months. 

“A year on from Trump’s inauguration, he has delivered on many of the promises he made to roll back the EV buying incentives and is attempting to domesticate manufacturing. 

“In a move that signifies the arresting impact of this, GM has cancelled contracts with BEV battery suppliers,” he continues. 

“For the first time in seven years in the US we are predicting the market will shrink, by almost a third.”

The latest statistics show annual EV sales accelerated in several major European markets, with large-volume countries such as Germany and the UK growing by 48 per cent and 27 per cent respectively. 

Benchmark predicts the European EV market will grow by 14 per cent in 2026, thanks in part to the revival of consumer subsidies in several countries, including France, Germany and Sweden.

It says the outlook for the US EV market in 2026 remains weak, reflecting limited consumer incentives, a lack of supportive legislation and OEMs scaling back investment in electrification in favour of internal combustion engine production. As a result, EV sales in the US are forecast to decline by 29 per cent this year.