According to market research firm Rho Motion, global sales of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) reached 1.6 million units in May 2025, a 24% increase compared to the same period last year.

The primary driver of this sales increase was China, which, for the first time this year, surpassed 1 million units sold in a single month. Analysts attribute this surge to strong domestic demand and local manufacturers like BYD ramping up exports to emerging markets such as Mexico, Southeast Asia, and Uzbekistan. Charles Lester, a data manager at Rho Motion, stated that BYD’s exports have driven the expansion of electric vehicle sales in several emerging countries.

In Europe, fleet vehicle incentives in Germany and stable demand in Southern Europe contributed to the sales growth. In contrast, North America exhibited sluggish performance. The end of subsidies in Canada negatively impacted sales, while the introduction of a 25% tariff on new vehicles, the easing of emissions regulations under the Trump administration, and uncertainty surrounding tariff policies suppressed electric vehicle demand in the U.S.

Looking at regional sales figures, electric vehicle sales in China reached 1.02 million units in May, a 24% year-over-year increase. Europe recorded a 36.2% rise to 330,000 units, while North America saw a 7.5% increase to 160,000 units. Other regions experienced a 38% growth to 150,000 units. Lester noted that the expansion in the Chinese market starkly contrasts with the stagnation in North America.