Worldwide, a Quarter of New Car Sales Are Electric Vehicles or Hybrids

Why It Matters

The gap between U.S. sales and global averages signals a competitive risk for domestic automakers and highlights the urgency of expanding charging networks to meet rising demand.

Key Takeaways

• Global EV/hybrid share reached 25% of new car sales in 2025
• U.S. EV/hybrid sales hit 10% of new cars, far below global average
• Norway leads with 97% EV/hybrid sales; EU nations exceed 50% share
• China accounts for 62% of worldwide EV/hybrid sales, 53% domestic share
• U.S. charging points grew 150% but lag behind EV sales pace

Pulse Analysis

The International Energy Agency’s 2025 Global EV Outlook paints a clear picture of rapid electrification: electric and plug‑in hybrid models rose from 4% of all new‑car sales in 2020 to a quarter of the market today. This surge reflects aggressive policy support in Europe and Asia, where tax exemptions, toll rebates, and direct subsidies have turned Norway, Denmark, the Netherlands, and China into frontrunners. In Norway, nearly every new vehicle is electric or hybrid, while China’s 53% domestic share propelled it to capture 62% of global EV volume, underscoring the scale advantage of state‑backed incentives and a massive manufacturing base.

In the United States, consumer sentiment appears more favorable than sales figures suggest. A Pew Research Center poll conducted amid heightened gas prices found that roughly one‑third of adults would seriously consider an EV and nearly half a hybrid for their next purchase. Yet only 10% of new‑car sales were electric or hybrid in 2025, and the nation’s 240,000 public charging points—while the third‑largest global total—have expanded at a pace that trails vehicle growth. The infrastructure gap fuels uncertainty, with 53% of Americans lacking confidence that the U.S. can build enough chargers to support mass adoption. Policy makers face pressure to accelerate funding, streamline permitting, and align incentives with the accelerating demand.

The divergent trajectories have strategic implications for automakers, investors, and policymakers. Companies that have already scaled EV production in China or Europe are poised to dominate market share, while U.S. manufacturers risk losing ground unless they accelerate electrification and partner on charging solutions. The European Union’s 2035 ban on new gasoline cars adds further momentum, compelling legacy brands to pivot quickly. For investors, the data signal robust growth opportunities in battery supply chains, charging infrastructure, and software services, but also highlight the importance of regulatory risk management as governments worldwide calibrate subsidies and standards to balance climate goals with grid capacity.