Global EV Sales Surge in May as China Hits 2025 Target Early

Global electric vehicle (EV) and plug-in hybrid sales rose 24% in May compared with the same month last year, driven by strong demand in China, according to market research firm Rho Motion.

China surpassed 1 million EV sales in a single month for the first time in 2025, reaching a milestone originally projected for 2025. The surge was fuelled by robust domestic demand and increased exports from Chinese manufacturers, particularly BYD.

BYD’s exports to Mexico, Southeast Asia and Uzbekistan significantly contributed to the growth in those regions, said Charles Lester, data manager at Rho Motion.

In Europe, fleet incentives in Germany and strong demand in Southern Europe supported a 36.2% year-on-year increase in EV sales, reaching 330,000 units in May.

North America saw slower growth, with sales rising just 7.5% to 160,000 units. The expiry of Canadian subsidies and ongoing tariff uncertainties weighed on consumer demand.

Global automakers are facing a 25% import tariff in the United States, prompting many to withdraw their 2025 outlooks. Tesla’s Model Y production in Berlin is shielded from these tariffs, but the company faces increasing competition as global production expands.

In the United States, tax credits for EVs remain available but will begin phasing out from 2026, adding to buyer hesitation. Former President Donald Trump’s stance on emissions standards and trade policy has also contributed to market uncertainty.

Worldwide, total EV and plug-in hybrid sales reached 1.6 million units in May. China led with 1.02 million vehicles sold, followed by Europe with 330,000, North America with 160,000 and the rest of the world with 150,000, marking a 38% increase outside the top three markets.

“The story this month with global vehicle sales is the continued chasm between Chinese market growth versus the faltering market in North America,” Lester said.

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• Global EV and plug-in hybrid sales rose 24% in May to 1.6 million units

• China hit 1.02 million EV sales, reaching its 2025 target early

• Europe saw a 36.2% increase, while North America grew just 7.5%

Source: REUTERS