"Sales of battery-electric and plug-in hybrid cars grew almost everywhere around the world, reaching 20.7 million units sold, according to a Wednesday report from Benchmark Mineral Intelligence. That's around 20% more than in 2024, and it shows that even during a year of ups and downs, the general trend was still toward more electric and electrified sales. That applies everywhere except North America, according to the research firm."
"There, plug-in vehicle sales fell 4% compared to 2024, although pure electric vehicles rose 1%. This is a direct result of the United States eliminating the $7,500 federal tax credit that helped boost plug-in sales for years. The U.S. EV sales slowdown was partly balanced out by Mexico, which saw 29% more plug-in sales in 2025 (most of which were imported from China)."
"The end of the U.S. federal tax credit had an immediate effect on electric and electrified vehicle sales: they spiked just before it ended and then fell sharply. Q4 2025 sales fell 49% relative to Q3, representing a significant decline from one quarter to the next. The loss of its EV incentive also contributed to a 41% decline in Canada's plug-in sales in 2025."
Global sales of battery-electric and plug-in hybrid vehicles reached 20.7 million units in 2025, about 20% higher than in 2024. Growth was strong outside North America, with the rest of the world up 48% and Europe up 33%, while China's growth slowed after tax increases. North American plug-in sales fell 4% as the U.S. eliminated the $7,500 federal tax credit and Canada's rebate program ran out of funds, causing a 41% decline. U.S. Q4 2025 sales dropped 49% from Q3 after a pre-credit spike. Benchmark projects a 29% U.S. decline in 2026 due to limited incentives and reduced manufacturer electrification investment.
Read at insideevs.com
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