EV adoption rates: How the US and other markets compare in 2025

The electric vehicle (EV) revolution continues to accelerate, with EV adoption rates serving as a critical benchmark for industry leaders, investors and policymakers. In 2025, both US EV adoption rate and global trends highlight shifting consumer preferences, evolving policy landscapes and the rapid technological innovations shaping the future of transportation.

EV adoption rates, measured as the share of EVs in total new sales, serve as a benchmark for how rapidly markets are shifting from internal combustion engines (ICEs) to electrified transport.

The 2025 S&P Global Mobility analysis shows sharp differences across leading markets, shaped by unique regulatory, economic and infrastructure factors. These shifts are unfolding against a backdrop of weaker overall demand, with annual vehicle sales still averaging roughly 8 million units below pre-COVID-19 levels (Figure 1). 

Figure 1: Global vehicle demand 2005–2024*: From trough to peak to sluggish post-COVID-19 recovery 

Global EV adoption rates vary widely. Norway remains the clear leader, with more than 80% of new car sales being BEVs, driven by long-standing incentives and strong consumer commitment. Hong Kong, Denmark and Myanmar also record BEV shares above 55%, supported by a mix of policy frameworks and infrastructure readiness.

Mainland China dominates in absolute scale. In 2025, NEVs reached 50% of new sales, overtaking ICE vehicles for the first time. Its NEV sales exceed the combined total of the EU’s five largest markets, powered by a localized supply chain, gigascale battery production and aggressive model rollout from BYD and other domestic leaders. This scale advantage has driven cost-curve compression, enabling price parity or near parity with ICE vehicles in several segments. NEVs are now mainstream in Mainland China, with cost and choice no longer major barriers.

At the same time, Chinese automakers exported 3.5 million ICE vehicles and nearly 2 million NEVs in 2024, with plug-in hybrid electric vehicles (PHEVs) gaining strong traction in Brazil, Mexico and Central Asia. They are accelerating overseas production in Thailand, Brazil, Indonesia and Hungary to tailor products to local markets. However, strategies are shifting in restricted regions.

Following the EU’s late-2024 tariffs of up to 35.3%, Chinese OEMs shifted more toward PHEV and ICE exports, which caused an early-2025 dip in BEV sales, even as overall volumes and share continued to expand. In the longer term, joint ventures, local EU production and affordable BEVs should restore momentum as competition shifts to price and quality. 

In the EU5 (France, Germany, Italy, Spain, UK), policy remains the primary driver. Despite volatility, NEV share has risen to 23% in the second quarter of 2025, even as subsidy changes in markets like Germany caused temporary slowdowns. Subsidy removals, such as Germany’s, have caused temporary declines; however, demand is sustained in company-car and commercial channels where total cost of ownership parity is achievable. Continued growth depends on stable policy signals and targeted incentives.

From a consumer perspective, barriers differ by region. German buyers disproportionately cite limited travel range (71%) as the top concern, while mainland Chinese and Indian consumers point to charging time. In South Korea, charging time is tied with concerns over the safety of the technology itself. These differences underscore that while policy and infrastructure are critical, adoption strategies must also address local consumer hesitations.

Emerging markets in Latin America, Africa and parts of Southeast Asia remain well below 10% EV penetration, constrained by affordability constraints and limited charging infrastructure.

Figure 2: BEV adoption rate by market - Top markets + USA, 12 months through June/July 2025

Figure 3: Top markets + USA by NEV/electrified share, 12 months through June/July 2025

The United States remains an outlier among advanced economies. BEVs make up just 7.5% of new sales, with NEVs representing 9% (Figure 2; Figure 3), with volumes plateauing and slightly declining from 10% in early 2025 to 9% by midyear. Hybrids are absorbing most of the incremental electrification demand as automakers rely on them to meet emissions targets without forcing BEVs into segments where consumers remain hesitant.

Several factors explain this stall:

• Policy and incentives: US fuel economy standards, subsidies and CO₂ targets are weaker and more fragmented than those in Europe or Mainland China. Recent policy rollbacks have further calmed the urgency for a full BEV transition. 
• Competition: Mainland China’s NEV market supports far more brands and models, driving strong price competition. Its scale advantage is unmatched, with NEV sales roughly 2.5 times those of the next nine largest NEV markets combined (Figure 4).
• Pricing: Entry- and mid-tier BEVs still carry double-digit price gaps compared with ICEs. Batteries account for 35–40% of BEV prices; and regional cost differences, particularly for lithium iron phosphate (LFP) cells, favor China. These gaps stem from three primary factors (Figure 5). First, battery costs remain high and volatile, representing a disproportionate share of the total vehicle price. Second, tariffs and regional supply chain constraints inflate costs, particularly in the US. Finally, scale plays a decisive role: Mainland China’s vast NEV market compresses costs through competition and production volume advantages, while US automakers operate at far smaller scale.
• Consumer readiness: Beyond cost, US buyers remain concerned about charging convenience, network reliability and residual values. Forty-four percent say local public charging is insufficient.

Figure 4: Price parity tracker

Figure 5: Three Reasons for the MSRP price differences

Figure 7: Estimated tariff exposure per OEM type (in US dollar terms):

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S&P Global Mobility’s Light Vehicle Sales Forecast provides a 7-year outlook across 145+ countries and 11 regions, covering 97% of global sales volume. With expert analysis, segment-level insights, and add-on modules for extended forecasts, this tool helps OEMs, suppliers, and analysts anticipate market shifts, benchmark performance, and make confident strategic decisions.