Global EV market goes K-shaped as U.S. lags behind growth
Original: Global EV market goes K-shaped as the U.S. gets left behind
Why This Matters
Reveals global EV market bifurcation with implications for automaker strategies
International Energy Agency reports global EV sales reached 20 million units in 2025, capturing 25% market share. China led with 55% EV adoption while U.S. stagnated at 10%. Latin America saw 75% growth.
The global electric vehicle market showed divergent trends in 2025, with strong growth outside the United States. EV sales hit 20 million units globally, representing 25% market share. China dominated with nearly 55% of new vehicles being electric, helped by affordability as two-thirds of Chinese EVs cost less than gasoline cars. Latin America experienced 75% sales growth, while Southeast Asia saw over half of EVs supplied by Chinese manufacturers. The U.S. market remained stagnant at 10% share, hampered by the elimination of EV tax credits through the One Big Beautiful Bill Act and policies blocking Chinese automakers. Chinese companies exported 25% more vehicles than foreign markets purchased, demonstrating manufacturing overcapacity. The IEA noted that affordable Chinese imports have driven EV adoption in emerging markets, challenging assumptions about electric vehicle costs in developing economies.