Legacy brands lag rivals over EVs

Legacy automakers across Japan, Europe and the US risk falling further behind brands focused on EVs in the global market, according to a report by the International Council on Clean Transportation (ICCT).

EVs accounted for one in four new vehicles sold worldwide in 2025, up from one in five in 2024, the report reveals.

While most manufacturers increased their EV sales share last year, the ICCT notes there is a growing divide between carmakers increasing their electric offerings and those scaling back electrification strategies amid short-term market and policy shifts.

Tesla and BYD retained first and second spot respectively in the ICCT’s fourth annual Global Automaker Rating, an assessment of which brands are leading the transition to EVs.

However, the margin between the two is shrinking after BYD surpassed Tesla for global battery-electric vehicle (BEV) sales for a second consecutive year.

The Global Automaker Rating provides a data-driven analysis of carmakers’ progress towards a zero-emissions future based on their 2025 sales, technology performance, and strategic commitments.

A number of Chinese companies were among the top performers for the second year in a row after increasing their EV sales share by five to 10 percentage points year-on-year. 

Geely retained third spot in the rating, ChangAn climbed from eighth to fourth and SAIC dropped one place to fifth in 2025. 

At least 50 per cent of units sold by SAIC and Geely were EVs.

The report adds plug-in hybrids (PHEVs) accounted for the majority of EV sales for Chinese carmakers, while most other manufacturers sold a larger proportion of battery-electric vehicles (BEVs).

In contrast, Stellantis, Honda and GM recorded sharp rating declines in 2025, driven primarily by downward revisions to their 2030 EV sales targets. Suzuki remained bottom of the annual ratings.

The ICCT says a continuing trend among global legacy automakers, particularly those based in Japan and the US, shows a pivot towards PHEVs and flexible platforms, while also arguing for more flexibility and relaxed timelines over regulations.

At the same time, market leaders from China, including Geely and SAIC, have outperformed their own electrification targets a year ahead of schedule. 

Great Wall is the exception among China-based carmakers as the only company to fall from “transitioner” to “laggard” in the rating this year after a pivot to plug-in hybrids.

Irem Kok, senior researcher at the ICCT and co-author of the report, says: “The rating shows a growing gap between the frontrunners who are expanding their global EV offerings to reach new markets and those still wavering on their electric commitments.

“The window for some legacy automakers to catch up is narrowing, particularly as their long-term investments for electrification are shrinking.”

Expansion in class coverage helped Hyundai-Kia move from “laggard” to “transitioner” status, the only carmaker to move into a higher category this year. 

Rachel Muncrief, ICCT acting executive director and CEO, adds: “We see from the data that most US and Japan-based automakers continued to offer electric models in fewer than a third of the vehicle segments analysed.

“Legacy automakers risk ceding their leadership in major markets where they historically dominate if they fail to adapt.”

ICCT suggests hesitation by some of the largest global carmakers offers an opportunity for new EV-only players to enter the scene, such as VinFast, Togg and Rivian.

Click here to read the full Global Automaker Rating report and detailed results for 22 carmakers.