US, Europe, and China Propel Global EV Market to Record Highs
In September 2025, global electric vehicle (EV) sales surpassed the 2 million mark for the first time, marking a historic milestone in the automotive industry. According to Rho Motion, 2.1 million EVs were sold, representing the highest monthly total ever recorded. This surge was largely driven by various factors in major markets like the United States, Europe, and China.
Key Drivers of EV Sales Growth
The recent growth has been attributed to expiring tax credits, new registration cycles, and local incentives across different regions. Charles Lester, Rho Motion’s data manager, stated, “Global EV sales topped 2 million units in a single month for the first time, driven by record-breaking demand across major markets.”
Year-to-date (YTD) statistics indicate a substantial increase in global EV sales. By the end of September 2025, the total reached 14.7 million units, a 26% increase compared to the previous year.
Sales Breakdown YTD (January – September 2025)
- Global Sales: 14.7 million (+26%)
- China: 9.0 million (+24%)
- Europe: 3.0 million (+32%)
- North America: 1.5 million (+11%)
- Rest of the World: 1.2 million (+48%)
Europe’s Contribution to EV Market Expansion
Europe experienced significant growth, selling a record 427,000 EVs in September. This marked a 36% increase year-over-year and a 55% surge from August. The UK played a pivotal role, bolstered by the release of new license plates and the Electric Car Grant initiated in July.
In Germany, a new €3 billion ($3.5 billion) incentive plan aims to assist low- and middle-income households, set to boost the market further in 2026. Countries like Italy and Spain are also witnessing impressive growth, with sales increasing by two-thirds and more than double, respectively, compared to the previous year.
North America’s Rush for EVs
In North America, especially the US, EV sales surged 66% year-over-year in September. Consumers rushed to take advantage of federal tax incentives prior to their expiration on September 30. However, Rho Motion predicts a decline in demand in Q4 2025 as these credits vanish.
Automakers are already responding defensively. Hyundai has reduced prices, and Mercedes-Benz has paused production of four EV models. General Motors has suspended a production shift at its Tennessee plant, while Volkswagen halted ID.4 production in October. Additionally, Nissan has decided to abandon its plans to manufacture EVs in the US.
China’s Dominance in the EV Sector
As the world’s leading EV market, China sold 1.3 million EVs in September, driven by robust demand for battery electric vehicles (BEVs). Pure-electrics accounted for 800,000 units sold, reflecting a 28% increase year-over-year. Meanwhile, plug-in hybrids (PHEVs) saw a slight decline.
With nearly 9 million EVs sold YTD and a 24% increase from 2024, China remains the largest player in the global EV landscape. This impressive growth underscores the country’s position as a pivotal force in the transition to electric mobility.
