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Global Electric Vehicle Market Growth Slows Amid Policy Changes

Global electric vehicle registrations rose 20% in 2025 but showed signs of deceleration in December with only a 6% increase. The slowdown is attributed to reduced growth in China and significant policy shifts in the U.S. and EU.

Insights:
Global electric vehicle (EV) registrations surged by 20% in 2025, reaching a total of 20.7 million units. However, the market is now showing signs of deceleration, with December 2025 recording only a 6% month-on-month growth—the smallest increase since February 2024. This slowdown is largely driven by a significant cooling in China, coupled with major policy shifts in the United States USUSand the European Union EUEU.
A Great Wall Motors (GWM) Ora electric vehicle (EV) is displayed at the GWM booth during a media day for the Auto Shanghai show in Shanghai, China, on April 24, 2025. REUTERS/Go Nakamura
A Great Wall Motors (GWM) Ora electric vehicle (EV) is displayed at the GWM booth during a media day for the Auto Shanghai show in Shanghai, China, on April 24, 2025. REUTERS/Go Nakamura
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