Global BEV/ PHEV sales hit 4 million in Q1
The first quarter of 2025 witnessed a remarkable surge in global battery electric vehicle (BEV) sales, with an impressive year-on-year growth of 42%. This increase propelled the global BEV market share to a record-breaking 16% for Q1.
China played a pivotal role in this growth, accounting for over 60% of worldwide BEV sales and establishing its dominance in the electric mobility market. Supported by ongoing government stimulus measures, BEV sales in China soared by 55% in the first quarter of 2025 compared to the same period in 2024. This rise resulted in China's highest-ever BEV market share for Q1, reaching 27%.
Analyzing global plug-in hybrid electric vehicle (PHEV) sales presents a similar trend. PHEV sales in Q1 2025 grew by 27% year-on-year, primarily driven by a 37% increase in China. Together, these growing sectors in electric mobility contributed to over 4 million units sold across 40 markets in the first quarter.
In Europe, the top five markets experienced a resurgence in BEV sales after a temporary dip, rebounding by 30% following three consecutive quarters of decline. The United Kingdom and Germany led this recovery, showcasing significant growth of 43% and 39%, respectively.
Despite this considerable expansion in electric vehicle adoption, the pace of automotive electrification has been slower than some experts anticipated. Global geopolitical challenges continue to complicate progress toward widespread electric mobility.
Top findings
- Due to escalating trade barriers, the global automotive market is at risk of fragmenting into three distinct geopolitical blocs
- The market share of BEVs in global new vehicle registrations has risen to 16%, setting a new record for first-quarter performance
- The global shift toward electric mobility continues to gain momentum, as worldwide BEV sales have increased by 42%
- The German market is showing signs of recovery, exhibiting growth for the first time in five quarters, with a 39% increase in Battery Electric Vehicle (BEV) sales
- In light of current price pressures, German manufacturers should swiftly implement cost-reduction strategies and pass these savings on to customers
Electric vehicle sales data
France, Germany, Italy, Spain, and UK
After three consecutive quarters of year-on-year declines in BEV sales, Q1 2025 experienced a significant revival. Sales of BEVs increased in the top five markets by 30%, resulting in the highest BEV market share on record for the first quarter of the year (15%).
The relatively large BEV markets of the UK and Germany were responsible for much of that growth, up by 43% and 39%, respectively. Germany’s strong growth can be partly attributed to a sudden fall in sales in the equivalent quarter last year in the wake of the sudden withdrawal of incentives. Despite the overall strong performance, Germany remains in second place for the largest market for BEVs in Europe, following the UK's lead in both the first quarter and full year of 2024.
BEV sales in Italy (+73%) and Spain (+69%) increased by a higher proportion, but from a much lower base. Only France bucked the trend, down by 7% in comparison with Q1 2024, a period when BEV registrations mushroomed due to the introduction of the short-lived low-income lease subsidy. The UK has the highest BEV market share of 21%, followed by France (18%) and Germany (17%). Spain (7%) and Italy (5%) still have plenty of catching up to do.
Other European markets
Denmark boasted the strongest BEV growth among the other European markets, up by 62% in Q1 2025 vs. Q1 2024. Denmark’s BEV market share (65%) is second only to Norway (91%). ICE sales constituted 19% of sales in Denmark in the first quarter, and 2% in Norway.
BEV sales grew by 18% in the first quarter of 2025 when compared with the equivalent quarter last year. Many consumers have wanted to take advantage of the existing tax credit of up to $7,500 before its possible reduction or cancellation under the new presidential administration. BEV market share (8%) was higher than in any previous first quarter of the year.
PHEV sales declined by 11% in Q1 2025 vs. Q1 2024, the third quarter in succession to witness such a decline. This performance can partly be explained by the fact that some popular PHEV models have recently become ineligible for tax credits due to battery sourcing requirements. PHEV market share for the first quarter was just 2%.
China
In the first quarter of 2025, BEV sales surged by 55% compared to the same period last year, setting a record for any first quarter. The market continues to be boosted by a series of government measures, including the expansion of the trade-in scheme which offers financial incentives that encourage consumers to upgrade to newer vehicles. ICE sales were down 7% year on year, the tenth successive quarter in which such a decline was registered.
South Korea
BEV sales grew by 37% in the first quarter compared to last year, while PHEV sales more than doubled, albeit from a very low base. The combined BEV and PHEV market share of just over 10% is dwarfed by the hybrid market share of 35%.
Japan
The Japanese EV market continues to be dominated by the sale of hybrids, with a market share of 62% during Q1 2025. The combined market share of BEVs and PHEVs in the same period was less than 3%. BEV sales fell by 1%, the fifth successive quarter of decline.
About the „Electric Vehicle Sales Review“ by PwC and Strategy&
PwC Autofacts® and Strategy& have analyzed electric vehicle sales worldwide in the first quarter of 2025.
Steven van Arsdale also contributed to this report.
