Rho Motion reported that the number of electric vehicles sold globally in March 2025 is 1.7 million, with 4.1 million sold in Q1 2025. The EV market grew by 29% in March 2025 compared to March 2024, and increased by 40% compared to February 2025.

This quarter, while turbulent, has seen a strong rate of growth globally for the EV market. Some countries, such as the UK, had a record-breaking March as drivers continue to go electric. The removal of subsidies in France has had a shrinking effect on sales which are down 18%. Meanwhile, in North America, forecasts are struggling to keep up with the rate of policy announcements under the current White House administration. What is sure is that the electric vehicle market is already struggling to compete with ICE on cost, so reductions in subsidies and hefty tariffs for a very international supply chain are guaranteed to have a cooling effect on the industry.

—Rho Motion Data Manager, Charles Lester

Snapshot electric vehicle sales in Q1 2025 vs Q1 2024, YTD %:

• Global: 4.1 million, +29%

• China: 2.4 million, +36%

• Europe: 0.9 million, +22%

• North America: 0.5 million, +16%

• Rest of World: 0.3 million, +27%

The European EV market has grown at 22% YTD, with BEVs growing at 27% and PHEVs at 10%. BEV sales in several countries are growing fast YTD, with BEVs in Germany up 37%, Italy up 64%, and the UK growing by 42%. The UK had a record number of EV sales in March 2025, with more than 100,000 units sold for the first time. A large volume of vehicle sales is expected in March (and September) in the UK due to the new registration plates. However, the UK market still grew by 41% in March 2025 vs March 2024. The French market remains down YTD at -18%, a direct result of the reduction in available incentives, with BEVs down -5% and PHEVs by -47%.

The North American EV market (US, Canada, and Mexico) had a strong Q1 2025, growing by 16% compared to Q1 2024. In February, President Trump announced a 25% additional tariff on imports from Canada and Mexico, and then in March a 25% tariff on all countries’ imports of automobiles and certain automobile parts, with importers of automobiles under the United States-Mexico-Canada Agreement (USMCA) able to certify their US Content and systems so that the tariff will only apply to the value of their non-US content.

In 2024, around three-fifths of EVs sold in the USA were domestically produced. However, most of the remaining EV sales are manufactured in Japan, Korea, and Mexico. OEMS may be able to absorb some of the tariff, however, the levy will likely lead to a rise in price for US consumers in both the ICE and EV markets. The landscape for the total passenger car market will change as a direct result of the tariffs, especially from automakers in Korea and Japan, as well as US automakers operating in Mexico, that export a significant number of affordable models to the US market each year.

The Chinese market increased by 36% in Q1 2025, compared to the same period last year. EV sales almost reach one million in March 2025, a feat first achieved in August last year. The ongoing tariffs between China and the US will have a limited impact on EV sales, due to the small number of EV sales between the two countries. The Model S and Model X from Tesla are exported from the US to China in low volumes, but due to the current tariffs, the price would almost double for these Tesla vehicles.