Electric vehicles (EVs) continue to gain market share worldwide.
Battery electric vehicles (BEVs) account for most EV sales globally. Plug-in hybrid electric vehicles (PHEVs) have seen significant increases recently, especially in China, shifting from a defensive tool for legacy automakers to a technology that can strengthen China’s global influence. The EV transition is not only about technology but also about economics, geopolitics, and climate commitments.
While long-range PHEVs and extended-range EVs can play a transitional role in US automaking, securing resilient industrial leadership will ultimately depend on advancing BEVs and reducing risks of overdependence in battery value chains.
The global automotive industry is undergoing a historic transformation. Electric vehicles (EVs)—including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs)—are rapidly gaining market share worldwide. China has experienced the deepest transformation, followed by Europe—despite considerable heterogeneity within it—and by the US.
In many regions of the world, the car market has developed in markedly new directions in recent years. In 2024 plug-in vehicles—both BEVs and PHEVs—accounted for roughly one in five new cars sold worldwide. Estimates for 2025 point toward increasing market share and a total of roughly 20 million electric cars sold. Yet beneath this aggregate figure lies striking regional differences in both technology choice and adoption speed.
China has experienced the deepest transformation. In 2024 it represented about 60 percent of global EV sales, with BEVs making up the bulk of EV deliveries but PHEVs growing rapidly. Europe is the second key pole of electrification globally in terms of sales and domestic manufacturing, though with marked heterogeneity among countries and with remaining reliance on China in its battery value chain. Nordic countries such as Norway, Sweden, and Denmark are at the forefront of the electrification of the car fleet in the EU, with EVs, and in particular BEVs, already having high market shares.
The United States presents a different picture. EVs accounted for 10 percent of its car sales in 2024. BEVs are clearly ahead of PHEVs in terms of new car registrations, representing about 80 percent of total electric car sales that year. This aligns with the outsize role of Tesla in shaping consumer preferences, brand perception, and charging infrastructure.
/Center on Global Energy Policy/