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 unhinged tariffs and the potential end of the federal clean vehicle tax credits, threatening a previously strong economy. 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.

While the growth of EVs remains strong, the future trajectory is uncertain. The administration has made moves to roll back the federal clean vehicle tax credits, which could slow the pace of adoption for many consumers. Additionally, the administration has raised the prospect of imposing a 25% tariff on imports from Canada, and Mexico, a critical manufacturing hub for many of these EVs.

These changes, if implemented, may take weeks or even months to fully materialize, leaving a window of opportunity for buyers to take advantage of current incentives. Economically unsound tariff announcements and threats come at least once or more per week, making business planning for automotive companies nearly impossible, and making enemies out of formerly friendly trading partners.

“What we’re seeing is a lot of cost, a lot of chaos,” said Ford CEO Jim Farley. “If you look at the tariffs, let’s be real honest, long term, a 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen.”

The chances of a recession in the US has risen in recent weeks, according to major American banks. JPMorgan Chase now estimates the risk of a 2025 economic downturn at 40 percent, up from 30 percent at the start of 2025. Goldman Sachs raised its recession probability from 15 percent to 20 percent last week. The administration’s disastrous trade policies are the primary cause of such darkening forecasts.

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, despite the administration’s erratic behavior.