Forecast: electric vehicle sales to grow by 30% in 2025
By ForGeeks 2024 has been a mixed year for the electric vehicle (EV) market, but the future of the industry still looks promising. Analysts at S&P Global Mobility are predicting significant growth in electric vehicle sales in 2025, prompting a wave of optimism in the automotive industry.
Electric vehicle sales growth of 29.9%
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S&P Global Mobility forecasts a 29.9% increase in global electric vehicle sales, leading to 15.1 million electric vehicles on the road in 2025. This impressive increase in market size will see the share of electric vehicles grow from 13.2% to 16.7%. While passenger car production worldwide may decline slightly (by 0.4%), the electric vehicle sector is showing the exact opposite trend.
The electric vehicle sector is on the rise.
Possible challenges for the auto industry
Nevertheless, S&P Global Mobility’s CEO, Mark Fulthorpe, recognizes that there could be trouble on the horizon. Expected tariffs proposed by the Trump administration could affect the market. «The auto industry continues to navigate through uncertainty as we enter 2025»” Fulthorpe says. «In 2025, the manufacturing landscape will change as global trade slows and retaliation is likely to emerge.»
At the same time, the manufacturing landscape will change as global trade slows and retaliation is likely to emerge.
Regional Growth Forecasts
Despite challenges, the electric vehicle market is expected to flourish. China will continue to be the global leader in the electric vehicle market, with a projected share of 29.7% by the end of 2025. However, as its market matures, its year-on-year growth rate will be more modest, at just 19.7%.
At the same time, the market is expected to grow at a more modest rate of just 19.7%.
The U.S. is expected to grow at a higher rate of approximately 36%, which would take it to a market share of 11.2% by the end of 2025. Central and Western Europe, after some challenges in 2024, will regain momentum. Sales are forecast to increase by 43.4%, with market share rising to 20.4%.
India is the new star in the electric car market
The star of 2025, however, will be India. Analysts are predicting a staggering 117% growth in electric vehicle sales, which will increase India’s market share to 7.5%.
India will be the new star of the electric vehicle market.
Optimism and Challenges Ahead
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These predictions paint an optimistic picture for the future of electric vehicles. However, as we’ve seen in recent years, predicting the future is never easy, and the path forward is likely to be thorny. The expected end of federal subsidies for electric vehicles in the U.S. could be a major hurdle for automakers and consumers alike.
An expected end to federal subsidies for electric vehicles in the U.S. could be a major hurdle for both automakers and consumers.
