May 2025 EV sales hit 1.8 million worldwide, with Europe surging 23% while the US drops 26% and China falls 9%. Learn what’s driving the shift.
According to Benchmark Mineral Intelligence, the world saw about 1.8 million new electric‑vehicle (EV) and plug‑in hybrid registrations in May 2025, a 3% rise compared with the same month last year. The cumulative total for the first five months of 2025 is up 0.9% year‑on‑year, keeping the global upward trend alive for the third consecutive month.
Regional performance diverges
While the overall market is growing, the pace is far from uniform. Europe is the clear engine of growth, the United States is slipping, and China is experiencing a mixed picture of weaker domestic sales but record‑breaking exports.
Europe: Strongest growth driver
European EV registrations jumped 23% YoY in May and rose another 2% from April, pushing the continent ahead of the global average. Government subsidies remain generous, and soaring fuel prices are nudging buyers toward electric models.
Chinese‑made EVs are gaining ground despite EU tariffs that favour locally produced cars. In the United Kingdom, 32% of all EVs sold are Chinese‑origin, while Germany and France record 14% and 10% respectively. Chinese manufacturers are also moving production to Europe, reducing reliance on imports.
United States: Sales tumble
U.S. EV registrations fell 26% to roughly 123,000 units in May. The decline follows the expiration of the federal tax credit and a push from the Trump administration to relax CO₂ emission standards, shifting consumer focus back to internal‑combustion and hybrid vehicles.
Canada’s decision to open its market to a few Chinese OEMs is unlikely to offset the broader North‑American slowdown.
China: Domestic dip, export surge
Domestic registrations slipped 9% YoY to about 987,000 units after the government ended its old‑car‑replacement subsidy and the EV tax break expires in early 2026.
Nevertheless, China’s EV export market is booming. In May, exports reached a **record 450,000 vehicles**, driven by strong demand for larger, high‑capacity‑battery models. BYD leads the charge, followed by Chery and Geely, while Tesla’s Shanghai plant continues to contribute significantly.
Industry moves and partnerships
- Stellantis will start building Leapmotor’s compact B10 EV at a plant near Zaragoza, Spain, in late 2026, with plans for three additional Leapmotor models and a potential Dongfeng production line in Europe.
- Ford is negotiating with Geely over a partial sale of its Valencia factory in Spain.
- Nissan and Chery are expanding cooperation at Nissan’s Sunderland plant in the UK.
- SAIC‑MG announced a new Spanish factory slated to produce up to 120,000 vehicles annually by 2028.
- BYD aims to start production in Hungary by the end of 2026, after pausing a Turkish plant project.
Outlook
Europe’s supportive policy environment and rising fuel costs suggest continued EV momentum, while the United States may see a slower recovery unless new incentives emerge. China’s export strength underscores its growing role as a global EV supplier, even as domestic demand softens.
Stakeholders should watch policy shifts, battery‑capacity trends, and cross‑border manufacturing alliances as the next drivers of the EV market’s evolution.