The electric vehicle market saw remarkable growth in October 2025, with global EV sales, including both fully electric and plug-in hybrid models, rising by 23% to 1.9 million units. This surge in sales is a strong indicator of the growing global adoption of EVs, driven by increasing demand in major regions such as Europe and China. At the same time, North America faces challenges due to recent policy changes.
Europe Leads the Charge in EV Growth
Europe remains a major driver of the EV market, with sales rising 36% to 372,786 units in October 2025. The region’s robust performance is partly due to the growing popularity of electric vehicles in countries such as Germany, France, and the UK, where government incentives and rising consumer awareness continue to fuel EV adoption.
As Rho Motion data manager Charles Lester states, “In Europe, the overall year-to-date growth figure remains relatively high, and we’re expecting strong sales towards the end of the year.” This indicates that the electric vehicle market in Europe is poised to continue its upward trajectory.
China Dominates the Electric Vehicle Market
China remains the global leader in the electric vehicle market, accounting for more than 50% of global EV sales. In October, sales in China reached around 1.3 million vehicles, maintaining the country’s position as the world’s largest EV market. As Rho Motion explains, “the price parity between electric and ICE vehicles in China is a lot closer compared with the European or North American markets,” says Lester. This pricing advantage helps boost the appeal of electric vehicles in China.
North America Faces Setbacks Despite Global EV Growth
While the global EV market is thriving, the North American market saw a 41% decline in October, with sales dropping to 100,370 units. This downturn is attributed to the expiration of a significant $7,500 tax credit for electric vehicles in the United States, which had previously supported EV sales. As Lester notes, “Battery-electric vehicles remain much pricier than comparable internal combustion models in the U.S., contributing to steep October sales declines across major automakers.”
What’s Next for the Electric Vehicle Market?
Despite setbacks in North America, the global electric vehicle market is expected to continue growing, especially in China and Europe. China’s EV market is poised for stronger growth as it shifts from a full tax exemption to a 50% tax exemption for NEVs. This transition is expected to have a significant pull-forward effect, boosting sales as consumers make purchases before the policy change.
In conclusion, the electric vehicle market continues to evolve rapidly, driven by strong sales in Europe and China. While challenges remain in North America, the global push for sustainability and cleaner transportation is shaping the automotive industry’s future.
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