Global EV Sales Up 50%, US Up 30% in February 2025

The electric vehicle (EV) market in the U.S. has continued its impressive growth trajectory in 2025, defying the uncertainties surrounding the potential end of the federal clean vehicle tax credits. Despite these challenges, the first two months of this year have seen a 30% growth in EV sales, according to Rho Motion, a market intelligence firm. This surge includes both fully electric vehicles and plug-in hybrids, signaling a continued shift toward cleaner transportation.

Several key players in the EV space, including Ford, Hyundai, Kia, and Honda, have reported strong sales growth. Ford, for example, saw a 15% increase in its EV sales year-over-year in February. Meanwhile, Honda sold nearly 3,000 Prologues and 1,500 Acura ZDXs last month, a clear indication that consumers are increasingly interested in the growing variety of EV options. Hyundai and Kia have also seen significant growth, with their Ioniq 5, Ioniq 6, and EV9 models continuing to gain traction.

Rho Motion Data Manager, Charles Lester, said:

“It’s been a solid start to the year for EV sales globally with a 50% bump in February compared to the previous year. Much of the growth continues to come from China which are seeing a pure electric renaissance this year compared to the hybrid love affair of 2024. Despite high tariffs, their domestic brand, BYD, shows no signs of slowing down their home and international expansion.”

“Meanwhile, in Europe, battery electric cars are flavor of the month with a leap of 29% year-to-date. France’s weight tax on plug-in hybrids has had a big impact on those vehicle sales which are down almost 50% so far this year. Manufacturers might be relieved that the EU has introduced flexibility into the emissions standards, but they will still need to put their foot to the pedal to avoid large fines.”

“As for North America, the region is seeing steady growth of 20% so far this year. American drivers bought 30% more electric vehicles than they had by this time last year, making use of the final months of IRA tax breaks before the incentives are expected to be pulled later this year.”

Competition is intensifying for the US EV market. General Motors (GM) has been steadily increasing its market share, though the company only releases sales data on a quarterly basis. In January, the Volkswagen ID.4 ranked as the third best-selling EV in the U.S., marking another significant milestone in the global automaker’s quest for a larger slice of the EV market.

It’s also important to note that 2024 saw an oversupply of EVs, which led automakers to offer aggressive pricing strategies, including attractive lease and financing options. The current surge in sales could partly be attributed to consumers taking advantage of these deals before inventories are cleared out. Volkswagen, for instance, ended a multi-month stop-sale on the ID.4 in January and aggressively cleared out remaining stock. As inventories normalize, the pace of growth may slow, but for now, consumers seem eager to secure a deal on the latest EV models.

Looking ahead, the EV market’s growth will depend not only on consumer demand but also on the government’s policies and the ongoing competition between automakers. While there are still many uncertainties, one thing is clear: the mass adoption of electric vehicles in the U.S. is closer to being well underway, and it shows no signs of slowing down anytime soon.