Growth in global electric vehicle (EV) sales slowed to its weakest pace in nearly two years in late 2025, highlighting emerging challenges in the transition to electrified transportation. The trend reflects a plateau in China’s EV market and significant shifts in U.S. policy that have dampened demand.
According to industry data, global EV registrations increased by only about 6% in November, marking the slowest year-on-year growth since February 2024. Total new EV registrations globally remained under 2 million vehicles for the month — a modest rise compared with earlier periods of double-digit expansion.
China’s EV Market Losing Steam
China, the world’s largest EV market and a driver of global adoption in recent years, saw its own EV sales growth slow to just 3% year-on-year in November. This is the weakest pace in nearly two years, indicating that consumer demand may be cooling after years of robust gains. Reduced government subsidies and broader economic pressures are expected to further dampen EV uptake in China in the months ahead.
U.S. Policy Shifts Impact Demand
In North America, demand fell sharply following the expiration of key federal EV tax incentives in the United States. November registered EV sales in the region plunged by around 42%, and analysts warn that the U.S. market may even see a year-on-year decline overall in 2025 — the first such drop since the mid-2010s.
Industry watchers attribute the downturn to policy changes under the current U.S. administration, including the phase-out of the $7,500 federal EV tax credit and proposed rollbacks in fuel economy standards. These shifts have weakened the financial case for many consumers considering an EV purchase.
Europe and Other Markets Continue Strong Growth
Not all regions are slowing. Europe posted robust EV growth in November, with registrations rising by around 36%, buoyed by national incentives and expanded model availability across major markets. The “Rest of World” category — including markets in Asia, Latin America, and the Middle East — also recorded healthy increases.
Wider Policy Dynamics and Auto Industry Responses
Recent political developments in major markets are reshaping the landscape for EV adoption. In the UK, the Conservative Party has proposed rolling back the planned 2030 ban on new petrol and diesel car sales, a move that could introduce further uncertainty around emissions targets and EV incentives.
Meanwhile, in the European Union, policymakers are reportedly reconsidering the 2035 combustion-engine phase-out rule, which could delay the transition timeline for zero-emission vehicles — a shift welcomed by some traditional automakers but criticized by EV advocates and environmental groups.
What This Means for the EV Transition
The slowdown in global EV sales growth underscores the delicate balance policymakers and automakers must strike between market incentives and broader socio-economic pressures. While long-term forecasts still point to expanding EV adoption worldwide, the recent plateau highlights how sensitive demand can be to shifts in government support and economic conditions.
Analysts suggest that sustained growth will require renewed policy commitments, investment in charging infrastructure, and continued cost reductions to make EVs more accessible — especially in markets where adoption is lagging.