The leading electric vehicle (EV) research house, Rho Motion, has reported a significant surge in global EV sales for March 2025, with 1.7 million units sold, bringing the total for the first quarter of 2025 to 4.1 million. This marks a 29% increase compared to March 2024, and a remarkable 40% rise when compared to February 2025.
Charles Lester, Data Manager at Rho Motion, noted, “This quarter, while turbulent, has seen a strong rate of growth globally for the EV market. Some countries, such as the UK, had a record-breaking March as drivers continue to go electric.” However, he pointed out the challenges facing the market, particularly in Europe, where the withdrawal of subsidies in France has resulted in an 18% decline in sales, while North America is grappling with rapidly evolving policy changes from the current administration. He further highlighted that “the electric vehicle market is already struggling to compete with ICE on cost,” with impending tariff impacts likely to exacerbate the situation.
Examining the first quarter sales figures, China has emerged as the leading market with 2.4 million EVs sold, reflecting a 36% year-on-year growth. Europe followed with 0.9 million units, a 22% increase, while North America recorded 0.5 million sales, growing by 16%. The rest of the world contributed an additional 0.3 million, up by 27%.
In Europe, there has been notable growth in battery electric vehicles (BEVs) with an annual growth rate of 27%, while plug-in hybrid electric vehicles (PHEVs) are up 10%. Specific countries showcased impressive sales increases: Germany’s BEV sales rose 37%, Italy saw a significant 64% growth, and the UK achieved a remarkable 42% increase. The UK achieved a historic milestone with over 100,000 EVs sold in March 2025 for the first time, although it is expected that peak sales occur in March and September due to new registration plates.
Conversely, the French market has contracted, with BEVs down by 5% and PHEVs plummeting by 47% year to date. The reduction in available incentives has directly influenced these declines.
In North America, encompassing the US, Canada, and Mexico, the market experienced solid growth in Q1 2025, rising by 16% from the previous year. However, the region is facing changes due to new tariffs. In February 2025, tariffs of 25% were announced on imports from Canada and Mexico, with further tariffs on all countries’ automobile imports introduced in March. These tariffs will apply based on the non-US content of vehicles certified under the United States-Mexico-Canada Agreement (USMCA).
Approximately 60% of EVs sold in the US last year were manufactured domestically. Nonetheless, a substantial portion of remaining sales comes from imports from Japan, Korea, and Mexico. While some automakers may absorb part of the tariff, it is anticipated that prices will increase for consumers in both the internal combustion engine (ICE) and EV markets, reshaping the overall passenger car market landscape.
In China, the EV market displayed a robust 36% growth in Q1 2025, with sales nearing one million units in March—the same milestone first accomplished in August of the previous year. The impact of ongoing tariffs between China and the US on EV sales is expected to be minimal due to the limited number of such transactions. However, it was noted that for Tesla’s Model S and Model X, exported from the US to China, tariffs could significantly inflate prices, making these vehicles considerably less accessible.
