Global Electric Vehicle Sales to Surge Nearly 30% in 2025, S&P Reports
Global sales of electric passenger vehicles are forecast to grow by nearly 30% in 2025, reflecting cautious optimism in the automotive sector amid economic and political uncertainties, according to a report by S&P Global Mobility.
Electric vehicle (EV) sales are projected to reach 15.1 million units in 2025, a sharp increase from the estimated 11.6 million in 2024. This would represent 16.7% of global light vehicle sales, up from 13.2% this year, S&P said.
China, the largest EV market, is expected to lead with a 29.7% share, followed by Europe at 20.4% and the US at 11.2%. India’s share is anticipated to double to 7.5%. Despite the growth, challenges persist, including infrastructure development, battery supply chains, and changing government policies on subsidies and incentives.
Overall, global vehicle sales are forecast to grow modestly by 1.7% annually, reaching 89.6 million units in 2025. However, uncertainty around trade tariffs, interest rates, and evolving EV adoption strategies is expected to test manufacturers and policymakers alike.
Elon Musk’s Tesla Motors, the largest EV maker, has already slashed prices to sustain demand, while trade tensions between the US, EU, and China add to the industry’s challenges. The incoming US administration’s policy changes are expected to further influence the trajectory of EV adoption.
