The Tool Desk
Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →The global electric-car market grew strongly in 2025, but not evenly: Europe had the fastest growth among the major markets, China remained by far the largest, and U.S. full-year sales were nearly flat after a steep fourth-quarter drop. The International Energy Agency (IEA) expects sales to keep rising in 2026, but its outlook is an estimate—not a final result—and the regions’ different policy and market conditions matter.
Global EV sales are growing, but regional performance diverges
The IEA’s Global EV Outlook 2026 reports that global electric-car sales rose 20% to more than 20 million in 2025, equal to 25% of new-car sales. It estimates 23 million sales in 2026, or 28% of the new-car market. That 2026 figure is a projection based on market trends through the first quarter of the year, not a completed annual count.
For the regional comparison, Europe led on growth rate, China on sales volume, and the United States was close to flat for the year. These are not interchangeable measures: a region can sell the most cars without having the fastest growth, and its share of new-car sales can differ substantially from both.
| Region | 2025 electric-car sales | Share of new-car sales | 2025 growth signal | IEA view for 2026 |
|---|---|---|---|---|
| China | More than 13 million | Almost 55% | Below 20% | Share expected to approach 60%; growth expected to be slower than in earlier years. |
| Europe | 4.2 million | 28% | More than 30% | Around 20% growth projected, with about one in three cars sold electric. |
| United States | Around 1.5 million | About 10% | Slightly below 2024; Q4 sales were 45% lower year over year. | No U.S. 2026 forecast is stated here. |
Unless noted otherwise, “electric cars” in these IEA figures include battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The figures therefore should not be compared directly with statistics that count BEVs alone.
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Which region is growing fastest?
Europe: fastest growth among the major markets
Sales across Europe increased by more than 30% in 2025 to 4.2 million, representing 28% of new-car sales. The IEA identifies the tighter EU car CO₂ standards taking effect in 2025 as a major driver of the increase. Those standards target a 15% reduction in emissions from 2021 levels. Policy is part of the explanation, alongside factors such as affordability, available models and broader market conditions.
Europe and the European Union are different geographic measures. Within the EU, electric-car sales were almost 3 million and their share was just under 27%; those EU figures are not the same as the broader European total.
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China: slower growth, much greater scale
China sold more than 13 million electric cars in 2025, almost 55% of all new cars sold there. Growth was below 20%, a marked slowdown from the preceding years, yet China contributed more than half of the global increase in electric-car sales because its market is so large. The IEA expects the share to approach 60% in 2026, while anticipating a slower growth rate than in earlier years.
United States: a weak full year and a sharp late-year drop
U.S. sales were around 1.5 million in 2025, slightly below 2024, and accounted for about 10% of annual new-car sales. Sales had grown by roughly 15% in the first three quarters, but fourth-quarter sales were 45% below the same quarter in 2024 after federal tax credits ended following September 2025. The late-year decline offset the earlier gains; it should not be mistaken for the full-year result or treated as a forecast for 2026.
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Policy timing helps explain the different trajectories
China’s purchase incentives changed
Trade-in incentives supported demand in China in 2025, although the scheme was temporarily paused in several cities. From 2026, the purchase-tax benefit changed from a full exemption to a 50% reduction, subject to eligibility conditions. These changes help explain why the IEA expects continued market expansion but slower growth than in earlier years; they do not, by themselves, determine how many cars will be sold.
EU standards influenced the 2025 increase
The EU’s 2025 car CO₂ standards are one policy reason the IEA cites for Europe’s strong sales growth. The standards’ target is a 15% emissions reduction from 2021 levels. The regional sales numbers cover Europe as a whole, while the standards and the nearly 3 million sales figure refer specifically to the EU.
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U.S. credits ended after September 2025
The end of tax credits after September preceded the steep year-over-year decline in U.S. fourth-quarter sales. The IEA’s account also notes that purchases had been brought forward, so the timing of the drop matters when interpreting the annual figures. The 2025 outcome alone does not establish the direction of U.S. sales in 2026.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Production and imports shape markets beyond the largest producers
China accounted for nearly 75% of electric-car production in 2025, and its exports doubled to a record of more than 2.5 million vehicles. The IEA says imports from China made up 55% of electric-car sales in markets outside Europe and the United States in 2025. Chinese-made cars also supplied an increasing share of sales beyond those two regions.
Imports were important in the U.S. as well: they represented nearly 40% of U.S. electric-car sales in 2025. These figures describe the origin of vehicles sold, not the location of every manufacturer’s ownership or the share of all cars produced that was exported. For consumers and policymakers, they show why production capacity and trade can influence which vehicles reach a market; they do not establish a particular price or availability outcome.
How to read the outlook without mixing unlike numbers
- Separate volume from market share. China’s more than 13 million sales show its scale; its almost 55% share shows how prevalent electric cars were among new-car purchases.
- Check the vehicle definition. The IEA’s headline “electric-car” totals combine BEVs and PHEVs. BEVs alone made up 65% of global electric-car sales in 2025, so a BEV-only series will produce a different total.
- Keep observed results apart from estimates. The 2025 regional totals are annual results; the 2026 numbers are IEA estimates based on trends through Q1 2026.
- Match the geography. Europe’s 4.2 million sales and 28% share include a broader region than the EU’s almost 3 million sales and just-under-27% share.
- Read quarterly changes in context. The U.S. Q4 decline followed the end of credits and came after growth in Q1–Q3. A single quarter does not describe the entire year.
For personal-finance decisions, this market outlook is useful as context on adoption, policy and vehicle supply—not as a direct forecast of the purchase price, running costs or resale value of a particular car. Those depend on the vehicle, location, incentives and individual circumstances, none of which these regional sales totals settle.
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