China breaks EV records. Again.

 From Electrek

Global EV sales surged in May 2025, hitting 1.6 million units sold, according to the latest data from EV research house Rho Motion. That brings the total for the year so far to 7.2 million EVs, a 28% increase compared to the same period in 2024. [So, we could reach at least 20 million EVs/PHEVs globally by the end of the year, 25% plus of total car sales.]

The big winner: China. The country sold a record-breaking 1 million EVs in May alone. That’s a 33% jump year-over-year, and a 10% boost compared to April. The rest of the world saw solid gains too, but North America lagged far behind, mainly due to slashed incentives in Canada.

Rho Motion’s Charles Lester broke it down: “The story this month with global vehicle sales is the continued chasm between Chinese market growth, which saw 1 million vehicles sold in May, versus the faltering market in North America.”

Let’s take a closer look:

Europe holds steady, with help from Spain and Italy. Europe is up 27% year-to-date, with 1.6 million EVs sold from January through May. Countries like Germany (+45% YTD) and the UK (+32% YTD) are helping lead the way, but southern Europe is really stepping on the accelerator. Spain saw a whopping 72% growth in EV sales so far this year, and Italy isn’t far behind at 58%.

Germany just rolled out a new set of EV incentives focused on commercial fleets. With corporate vehicles making up more than half the German auto market, those tax breaks and special depreciation offers could supercharge sales in the coming months.

North America stalls out. The US, Canada, and Mexico are dragging, with just 3% growth YTD. That’s mostly due to Canada’s pause on EV subsidies, which caused a steep 20% sales drop.

The US is holding on with 4% growth, helped by the federal EV tax credit that remains in place through the end of the year. But those credits may start phasing out in 2026 and disappear by 2027, if Republicans get their way (or kill them even sooner). Expect a late-year bump as buyers rush to cash in while they still can.

China dominates again. China continues to be the EV powerhouse. In May, it became the first country this year to break the 1-million-EVs-sold-in-a-month mark. It first hit that level in August 2024, and it hit the milestone again just ahead of the summer push.

Chinese automakers aren’t slowing down either. BYD is expanding its presence in Europe with new BEVs and plug-in hybrids. Its tiny budget EV, the Dolphin Surf (called the Seagull in China), just launched in Europe with a price tag around $25,000, and it’s not subject to new EU tariffs on Chinese EVs, since it’s a hybrid. [This may be true of the European version, but the Dolphin Surf in the UK is fully electric]