Electric vehicle sales in North America dropped 4% in 2025, largely due to the expiration of the Federal EV tax credit in the United States. Tesla and other automakers experienced declines in the U.S. market during this period.
Chinese company BYD Co passed Tesla to become the top EV seller globally in 2025. Tesla recorded its second consecutive annual sales decline worldwide.
A report from the Benchmark Mineral Institute shows global electric vehicle sales reached 20.7 million units in 2025, representing a 20% increase from the previous year. Regional figures include 12.9 million vehicles in China, 4.3 million in Europe, 1.8 million in North America, and 1.7 million in the rest of the world.
"Globally, the EV sales figures have grown by a fifth compared to the previous year, which shows how resilient the market is," said Benchmark Mineral Intelligence Data Manager Charles Lester.
In North America, Mexico reported a 29% increase in plug-in vehicle sales, partially offsetting weaker performance in the U.S. and Canada. Fourth quarter EV sales in the region fell 49% compared to the previous quarter.
Europe emerged as the fastest growing major region for electric vehicles in 2025. Chinese EV companies accounted for 14% of sales in Europe, with BYD leading this expansion.
BYD achieved another vehicle model surpassing one million sales and saw its European efforts yield results. Tesla faced multiple challenges including declining EV demand, the U.S. tax credit expiration, and brand issues related to CEO Elon Musk's political activities.
InsideEVs identified Volvo, Volkswagen Group, and General Motors as potential winners in the U.S. market for 2025, while labeling Tesla, Mercedes, Genesis and Kia as losers in the region.
Benchmark Mineral Intelligence forecasts Europe's EV growth may slow in 2026 but remains significant. The report suggests increased pricing competition in China may have prompted BYD to focus more on European and other markets for higher vehicle profits.
"For the first time in seven years in the U.S., we are predicting the market will shrink by almost a third," Lester stated, estimating a 29% year-over-year decline.
Several major automotive companies including General Motors and Ford Motor Co have reduced their electric vehicle models and plans. This development could create opportunities for global automakers to capture demand in the U.S. and international markets.