2025 will be the year of the EV revolution: record numbers for the sector

2025 is set to be the year of the electric revolution: record numbers for the industry. According to the latest projections from Rho Motion, global demand for electric vehicles (EVs) will continue to grow, reaching 20 million units sold, an 18% increase over the previous year.
Among the most dynamic markets are China and the United States, which remain the primary drivers of the electric transition. Specifically:

• China: 12.9 million units (+17%)

• USA: 2.1 million units (+16%)

• Europe: 3.5 million units (+15%)

• Rest of the World: 1.5 million units

This growth is driven by a combination of economic, regulatory, and technological factors. But what are the key dynamics accelerating EV adoption in China and the United States?

China: the electric giant accelerates further

China is the largest global market for electric vehicles, accounting for over 60% of global sales. In 2025, the country is expected to see further growth, with nearly 13 million units sold. This success is the result of several strategic elements:

1. Government policies supporting electric vehicles

   
   The Chinese government is heavily investing in sustainable mobility, offering tax incentives and rebates for electric vehicle purchases. Moreover, cities are implementing increasingly stricter regulations on gasoline and diesel cars, pushing consumers toward electric alternatives.

   
   
   

2. Leadership in battery production

   
   

   China dominates the lithium-ion battery supply chain, with giants like CATL and BYD leading the way. This gives China a competitive edge in terms of lower production costs compared to Western competitors, making EVs more affordable.

   
   
   

3. Growth of local brands
   
   

   Chinese automakers such as BYD, NIO, XPeng, and Li Auto are gaining market share with innovative models, competitive prices, and advanced technologies, including sodium-ion batteries and dedicated EV platforms.
   
   
   

4. Expansion of charging infrastructure

   
   China has heavily invested in charging infrastructure, aiming to install enough charging stations to support 20 million electric vehicles by 2025. This infrastructure development aims to reduce range anxiety and make mass EV adoption easier.

USA: the role of the inflation reduction act

In the USA, the EV market is set to grow, with sales projected between 1.7 million and 2.1 million units in 2025. This trend is supported by a series of government policies and automaker investments.

1. Tax incentives and federal investments

   
   The Inflation Reduction Act (IRA) introduced tax credits of up to $7,500 for those purchasing an EV made in the USA, thereby boosting demand. However, with the arrival of the new Trump administration in January 2025, changes may occur, including the potential elimination of these incentives.

   
   
   

2. Expansion of domestic production

   
   Tesla, Ford, General Motors, and Rivian are investing billions of dollars to expand EV production and reduce dependence on Chinese-made batteries. This includes building new gigafactories to increase production capacity.

   
   
   

3. Expansion of charging networks

   
   The federal plan aims to install 500,000 public charging stations by 2030, significantly improving accessibility to charging for drivers.

   
   
   

4. Growing demand for electric pickup trucks and SUVs

   
   In the USA, the EV market is driven by the introduction of electric pickup trucks and SUVs, categories that are particularly popular with American consumers. Models like the Ford F-150 Lightning, Tesla Cybertruck, and Rivian R1T are attracting an increasing number of buyers.

Europe and the rest of the world: contrasting scenarios

Europe will see a 15% growth, with 3.5 million electric vehicles expected to be sold in 2025. However, the sector faces several challenges:

• Stricter environmental regulations: The introduction of Euro 7 will make combustion engines more expensive, accelerating the shift to electric vehicles.

• Charging infrastructure still in development: While expanding, some countries still have insufficient charging networks.

• Pressure on manufacturers: Rising production costs and strong competition from Chinese brands are putting pressure on European automakers.

In the rest of the world, growth will be more modest, with 1.5 million units sold. Countries like India and Brazil are beginning to invest in electric mobility, but they still face challenges related to high costs and poor infrastructure.

Will 2025 really be the turning point?

2025 is shaping up to be a crucial year for the global spread of electric vehicles. China and the USA are leading the way in this transition thanks to government policies, investments in new technologies, and growing consumer demand.
However, some challenges remain:

• Battery costs: Reducing battery prices is necessary to make EVs competitive with combustion vehicles.

• Charging infrastructure: Expanding charging networks, particularly in emerging markets, is still a work in progress.

• Production capacity: Increasing production capacity to meet growing demand without bottlenecks in the supply chain is essential.

If these barriers are overcome, 2025 will indeed mark a turning point in the global transition to electric mobility.