Electric vehicles (EVs) have been at the center of one of the most heated debates in the automotive world, with headlines swinging between predictions of unstoppable growth and warnings of an imminent slowdown. Yet, as the dust settles on 2025 and 2026, the hard numbers reveal a much more dynamic—and optimistic—picture than many might expect. Despite a barrage of skepticism from politicians, automakers, and industry pundits, global EV sales have smashed records, while the U.S. market faces its own set of unique challenges and opportunities.
According to a new report by Rho Motion, as cited by Electrek, the world sold 20.7 million electric vehicles in 2025, a staggering increase of 3.6 million vehicles compared to the previous year. That’s a 20% jump globally, and it marks yet another year where EV sales have risen without exception. In fact, there’s never been a year when global EV sales declined—a fact that stands in sharp contrast to the persistent narrative of a cooling market.
Breaking down the numbers, China continues to lead the charge with a 17% increase, selling 12.9 million EVs in 2025. Europe also posted impressive gains, with a 33% surge to 4.3 million units. The rest of the world category, which includes emerging markets and smaller economies, saw the fastest growth—up 48% to 1.7 million vehicles. These figures underscore a global appetite for electric cars that shows little sign of waning, despite political and economic headwinds.
But not all regions are riding the same wave. North America, and specifically the United States, experienced a 4% dip in EV sales, totaling 1.8 million units in 2025. This decline, while notable, has important context. The situation mirrors what happened in Europe from 2023 to 2024, when Germany abruptly cancelled EV incentives, leading to a temporary drop in sales. In the U.S., the expiration of a $7,500 federal tax credit—thanks to President Donald Trump’s “One Big Beautiful Bill”—triggered a rush of purchases in the third quarter of 2025, followed by a sharp decline in the fourth quarter. As Electrek argues, these policy swings create artificial volatility that doesn’t reflect the underlying demand for EVs.
The North American dip also highlights a broader trend: the power of incentives and policy in shaping consumer behavior. When incentives disappear, so does some of the momentum. Yet, as seen in Europe, sales can rebound once the market adjusts. And while U.S. sales have stumbled, the rest of the world is more than picking up the slack.
Meanwhile, the gasoline-powered car is quietly losing ground. Internal combustion engine (ICE) vehicle sales are down about 25% globally from their peak in 2017, and analysts don’t expect them to return to those heights. The writing seems to be on the wall for the combustion engine, even if some automakers and policymakers are reluctant to admit it.
That reluctance has had consequences. Many Western automakers have scaled back their EV production plans, citing supposed softness in demand—a narrative fueled by misleading headlines and, as Electrek suggests, deliberate lobbying efforts to influence regulations. The Biden administration, for example, softened EPA exhaust rules after pressure from the industry, and Europe has twice relaxed its EV targets. Yet, even as these companies hedge their bets, Chinese automakers are charging ahead, ramping up EV production and capturing a growing share of the global market.
This divergence is already having real-world impacts. China has recently become the world’s largest auto exporter, a feat driven by its aggressive investment in EV technology and manufacturing. Western countries, by contrast, have responded with trade barriers and protectionist policies—moves that, according to Electrek, are unlikely to restore their competitive edge unless they recommit to innovation.
Amidst these global shifts, the U.S. market for affordable electric cars is quietly blossoming. As manufacturing scales and new models hit the market, entry-level EVs are now priced below $30,000. The redesigned 2026 Nissan Leaf, for instance, will launch at $29,990 for the ‘S+’ model, offering a 75kWh battery and an EPA-estimated range of 303 miles. A more basic ‘S’ version will arrive later at an even lower price point. The all-new Chevrolet Bolt, arriving in 2026, matches the Leaf’s starting price and will later drop to $28,995, thanks in part to cost-saving LFP batteries. The Hyundai Kona Electric SE starts at around $32,795, boasting a range of 261 miles and a suite of modern tech features.
Even Tesla, the poster child of the EV revolution, is feeling the pressure to compete on affordability. The Model 3’s entry-level price stands at $36,990, with a 321-mile range and brisk performance. Elon Musk has promised a $30,000 “Cybercab” built for autonomy, aiming to attract both cost-conscious and tech-savvy buyers. Ford, not to be left behind, has announced plans for a $30,000 EV by 2028, complete with advanced self-driving capabilities.
Yet, despite these advances, American consumers remain cautious. A Deloitte survey conducted in late 2025 found that only 7% of U.S. respondents picked a battery electric vehicle as their next car. More than 25% preferred hybrids or plug-in hybrids, while a whopping 61% still favored internal combustion engines. The survey, covering over 28,500 respondents in 27 countries, highlighted that enthusiasm for software-defined vehicles—cars loaded with AI and connectivity features—is actually lower in mature EV markets like the U.S., U.K., Japan, and Germany.
What’s driving this hesitation? Price, quality, and performance remain the top priorities for American buyers. Worries about limited driving range, long charging times, higher up-front costs, and insufficient public charging infrastructure loom large. Cold weather performance is also a common concern. As Ryan Robinson, an automotive research leader with Deloitte, put it, “You can’t really get away from this affordability thing is the number one issue that people are concerned with.”
Interestingly, brand loyalty is less of a factor than one might expect. Nearly half of U.S. respondents said it doesn’t matter whether their next car is domestic or foreign, and 18% actually prefer foreign brands. This openness could benefit international automakers who can deliver quality and value at the right price.
Hybrid vehicles are serving as a bridge for many consumers. Toyota’s Tundra hybrid, for example, saw record sales in October 2025, up 182% from the previous year. Manufacturers are leveraging their investments in battery technology to offer hybrids as a cost-effective alternative, maintaining a foothold in the market as the EV transition continues.
Still, the long-term trend is clear: as EV prices fall and total cost of ownership drops below that of gas-powered cars, more Americans are likely to make the switch. For now, though, the market remains a patchwork of rapid growth, regional setbacks, and evolving consumer attitudes. The global EV boom is real, and while the U.S. faces hurdles, the tide of change is unmistakable.
The numbers don’t lie: electric vehicles are not just surviving—they’re thriving. The question is not if, but how quickly the rest of the world, including the U.S., will catch up to this electric future.
