Fully electric and plug-in hybrid world sales will increase by at least 17% this year in over 20 million cars, with the help of expanding China’s car subsidies, according to a forecast by Rho Motion.

Europe, the second largest market for electric vehicles in the world, will return to sales increase as CO2 emissions will come into force and make cheaper models available, but the pace will remain slower than 2023, its research leader said. Rho motion, Iola Hughes.

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Car manufacturers look forward to 2025 as a year of transformation, as Europe introduces new targets to encourage EV adoption and China is expanding subsidies, while the US is canceling its electric targets under President Donald Trump.

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EV sales in China will probably grow more than a previous prediction for growth of 17% in 2025 and will boost its market dominance thanks to the expansion of subsidies, Rho Motion estimates. In 2024, a 40% record increased to 11 million.

Chinese electric vehicles sales will confirm the trends of 2024 in Latin America, where they have reached a market share of over 80%, and will continue to grow in the Asia-Pacific region and emerging markets, the company said.

For Europe, it provides for a total increase in sales by 15% out of the 3 million EVs sold last year.

Rho Motion sees EV 16% sales increase in the US in 2025 with a limited impact on Trump’s policy changes, but expects that they will have long -term consequences, including, at worst, a 47% reduction in EV batteries by 2040.

“In the US market, there is obviously a lot of uncertainty about the last year, and we are expecting reduced EV predictions”Hughes told Reuters.

“However, the shift to electric vehicles is still large and we will continue to see growth in the next decade.”