Electric vehicle (EV) sales in North America have experienced a significant 20% growth year-to-date. This surge can be attributed to the increasing presence of Chinese EVs in Mexico and the emergence of Tesla’s competitors in the United States. China, a global leader in EV adoption, reached new heights by accounting for 1.4 million out of the 2.4 million EVs and plug-in hybrid electric vehicles (PHEVs) sold worldwide in the first two months of 2025.
Despite the uncertainties surrounding tariffs and the potential discontinuation of federal clean vehicle credits, the uptake of electric vehicles continues to rise in the U.S. Market intelligence firm Rho Motion reported a 28% growth in EV sales in the first two months of the year, encompassing both fully electric vehicles and plug-in hybrids. While Tesla’s sales have been declining globally, other automakers have been seizing a larger share of the market with the introduction of new, technologically advanced, and reasonably priced EVs.
General Motors, Ford, Hyundai, Kia, and Honda have all reported growth in EV sales. Ford saw a 15% increase in EV sales year-over-year in February, while American Honda sold nearly 3,000 Prologues and 1,500 Acura ZDXs. Hyundai, Kia, and Volkswagen also witnessed year-over-year gains in their EV sales. The Volkswagen ID.4 even ranked as the third best-selling EV in the U.S. in January, following Tesla’s Model Y and Model 3.
However, the future of EV sales in the U.S. remains uncertain due to potential policy changes. The Trump administration has hinted at rolling back federal clean vehicle credits and imposing a 25% tariff on imports from Mexico, where many EVs are manufactured. Despite these challenges, EV buyers are taking advantage of current incentives, including attractive lease and financing offers.
Globally, EVs are experiencing strong momentum, with a 30% increase in EV and PHEV sales in the Jan-Feb period. China leads this surge, with BEVs growing by 46% and PHEVs by 22%. The European Union and the U.K. are also embracing EVs, with a 29% growth in fully electric models. The rise of small, affordable EVs in Europe is showing promising results, and a similar trend is hoped for in the U.S.
In conclusion, while the future of EV sales in the U.S. faces uncertainties, the current growth trends are encouraging. Automakers are introducing a variety of new EV models, and consumers are taking advantage of incentives to make the switch to electric vehicles. The global EV market is also experiencing a significant uptick, indicating a shift towards sustainable transportation options worldwide.