Sales of electrified vehicles are increasing worldwide, but a looming challenge is emerging | Carscoops

      China remains the leading force in the EV and PHEV markets, making up more than half of global sales.

      Sales of electrified vehicles are on the rise worldwide. The latest sales data combines both battery electric vehicles (BEV) and plug-in hybrids (PHEV). In North America, sales of electrified vehicles increased by 16% in the first quarter.

      While 2024 did not see the anticipated surge in electric vehicle sales, the start of 2025 is much more promising. Recent data indicates that electrified vehicles are being sold in unprecedented numbers across all major global markets. Despite this momentum, potential policy changes, especially cuts to subsidies and new tariffs introduced under the Trump administration, could dampen growth as the year advances.

      Global sales figures show that approximately 4.1 million electrified vehicles, including BEVs and PHEVs, were sold in the first quarter of the year. This marks a significant 29% increase compared to the same time frame in 2024, according to Rho Motion.

      In North America, around half a million electrified vehicles were sold in the first quarter, representing a 16% increase year on year. The specific figures for EVs versus PHEVs are not provided at the regional level, but prior data from Cox Automotive and Kelley Blue Book reported that 296,227 pure electric vehicles were sold in the U.S. during Q1, an 11.4% year-over-year increase.

      Demand for electrified vehicles continues to grow, with even more significant increases in other global markets.

      Europe experienced robust growth, selling approximately 900,000 electrified vehicles during January, February, and March, which is a 22% increase overall. Sales of battery electric vehicles surged by 27%, while plug-in hybrids saw a more modest growth of 10%. Notable growth was observed in several countries, with Italy increasing by 64%, Germany by 34%, and the UK by 42%.

      China leads as the largest individual market for EVs and PHEVs, with 2.4 million electrified vehicles sold this year, an increase of 36% from the previous year. Sales in the rest of the world have grown by 27%, totaling around 300,000 vehicles.

      According to Rho Motion, approximately 60% of EV and PHEV models sold in the U.S. are domestically produced, while the remainder typically comes from Japan, Korea, and Mexico. With new tariffs coming into effect, the prices of these imported models are expected to rise, along with price increases for internal combustion engine vehicles.

      “This quarter, while challenging, has shown a strong global growth rate for the EV market,” said Charles Lester, data manager at Rho Motion. “Certain countries, such as the UK, experienced a record-breaking March as more drivers shift to electric. However, the removal of subsidies in France has led to an 18% decline in sales.”