Global market ignores retraction in North America and closes year with record; Chinese dominate 85% of sales in Latin America
The global market for electrified vehicles ended 2025 with a new all-time high: 20.7 million units were sold, a growth of 20% compared to the previous year. The performance demonstrates the resilience of the sector, which, in December alone, sold 2.1 million vehicles, sustaining the rise even in the face of abrupt changes in subsidy policies in major economic powers.
The great highlight of the period was the change in the dynamics of regional growth. Europe took the lead in percentage expansion, registering an increase of 33%. The result was driven by both battery vehicles (BEVs), which grew 31%, and plug-in hybrids (PHEVs), with an increase of 38%. Markets such as Germany and the United Kingdom benefited from the relaxation of the European Union’s emissions targets, which took place in May 2025.
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Contrary to the European euphoria, North America faced a scenario of strong instability. In the United States, the revocation of tax credits in September had an immediate impact: sales in the fourth quarter plummeted 49% compared to the previous period. Canada followed a similar trend, with a 41% drop after the end of local subsidies.
China, on the other hand, maintained its leadership in absolute volume, with 12.9 million units and a growth of 17%. Faced with a saturated domestic price war, manufacturers such as BYD have turned abroad, raising exports from 400,000 to more than 1 million vehicles.
This strategy has guaranteed the Chinese dominance of emerging markets: in South and Central America, where sales rose 49%, Asian models already represent 85% of the total. For 2026, the expectation is that a new purchase tax will be implemented in China, which should dictate the next pace of global expansion.
