Global electric vehicle sales continued their upward trajectory in early 2025, with Rho Motion reporting 1.7 million units sold in March and a total of 4.1 million in the first quarter. The figures mark a 29% increase over March 2024 and a 40% jump from February 2025, underscoring strong momentum despite policy turbulence in several markets.
“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. The removal of subsidies in France has had a shrinking effect on sales which are down 18%. Meanwhile, in North America, forecasts are struggling to keep up with the rate of policy announcements under the current White House administration. What is sure is that the electric vehicle market is already struggling to compete with ICE on cost, so reductions in subsidies and hefty tariffs for a very international supply chain are guaranteed to have a cooling effect on the industry,” said Charles Lester, Data Manager at Rho Motion.
China accounted for the largest share, with 2.4 million units sold in Q1, a 36% year-on-year rise. March sales there approached one million, a milestone first reached in August 2024. Tariffs between China and the United States have had limited impact on EV flows, given the small volume of trade in electric models. Tesla’s Model S and Model X, exported from the US to China in low numbers, would see prices nearly double under current duties.
Europe’s EV market grew 22% year-to-date, with battery electric vehicles (BEVs) up 27% and plug-in hybrids (PHEVs) rising 10%. Germany’s BEV sales climbed 37%, Italy’s surged 64%, and the UK posted a 42% gain. March was historic for the UK, surpassing 100,000 EV sales in a single month for the first time. Seasonal spikes in March and September, linked to new registration plates, amplified the gains, but the year-on-year March growth of 41% reflected underlying demand strength. France was the notable outlier, with overall EV sales down 18% year-to-date, BEVs off 5% and PHEVs plunging 47%, directly tied to reduced incentives.
North America registered a 16% increase in Q1 sales compared to the same period in 2024. Policy developments added complexity: in February, President Trump announced a 25% additional tariff on imports from Canada and Mexico, followed in March by a 25% tariff on all automobile and certain parts imports. Under the United States-Mexico-Canada Agreement (USMCA), importers can certify US content so that the tariff applies only to non-US value. In 2024, about 60% of EVs sold in the US were domestically produced, with most of the remainder coming from Japan, Korea, and Mexico. The new tariffs are expected to push prices higher for consumers in both electric and internal combustion segments, particularly affecting Korean and Japanese automakers and US manufacturers with production facilities in Mexico.
The rest of the world saw a 27% rise in Q1 EV sales, contributing to the global total. Rho Motion’s data reflects not only the resilience of electric mobility but also the sensitivity of markets to shifts in subsidies, tariffs, and supply chain conditions.
Founded in 2018 by Managing Director Adam Panayi, Rho Motion has become a leading research house for electric vehicle and battery market intelligence, covering motors, systems, charging infrastructure, stationary storage, battery recycling, and broader energy transition sectors. In June 2024, it merged with Benchmark Mineral Intelligence, a rapidly growing player in lithium, critical minerals, and energy transition analysis. Together, with nearly 250 employees, the combined entity offers the largest platform for pricing, data, and market intelligence across critical mineral and energy transition supply chains.