Data released on Wednesday showed global electric vehicle registrations increased by 20% last year, though the pace of growth is expected to slow in 2026. In December, the sales increase was the smallest since February 2024, attributed to a slowdown in China and a relaxation of electrification targets worldwide.
Monthly registrations for electric vehicles, which include battery electric and plug-in hybrid models, dropped further in North America, according to consultancy Benchmark Mineral Intelligence. This followed the end of an EV tax credit scheme in the United States in October.
Charles Lester, a data manager at BMI, stated that radical policy shifts shook the global EV market in 2025 into what he described as a "virtually unrecognisable landscape." These shifts included a U-turn on electrification by U.S. President Donald Trump and a relaxation of emission standards in the European Union.
Rising competition in Europe and cooling demand in China are likely to intensify debates between electrification proponents and carmakers. Proponents emphasise the need to curb CO2 emissions, while carmakers argue a quick transition threatens jobs and profit.
In December, global EV registrations, used as a proxy for sales, rose by 6% to almost 2.1 million units. For the full year 2025, registrations reached 20.7 million vehicles.
In China, registrations were up by 2% to more than 1.3 million in December, marking the lowest year-on-year increase since February 2024. For 2025, Chinese registrations increased by 17% to 12.9 million units. China produced 71% of the EVs sold worldwide last year.
North American registrations fell by 39% to just over 100,000 cars sold in December, following similar declines in October and November after the end of U.S. tax credits. For the entire year 2025, North American registrations were down 4%.
Europe saw registrations up by 34% to over 450,000 in December and by 33% for the year. In the rest of the world, sales increased by 41% to over 160,000 units in December and by 48% in 2025.
BMI expects 23.9 million EVs to be sold globally this year, representing a 15.7% increase. Growth is forecast to accelerate sharply in China to 21%, while slowing in Europe and the rest of the world to 15% and 26%, respectively. A sharper decrease of 23% is forecast for North America, due largely to a projected 29% slump in the U.S.