Surge in Global Electric Vehicle Sales: One out of Every Four Vehicles Purchased is Electrically Powered
electric vehicle (EV) and plug-in hybrid (PHEV) sales skyrocketed in Q1 2025, reaching an astounding 25% of the global market share. Manufacturers sold a whopping 4.1 million EVs and 1.4 million PHEVs in the first three months alone.
In Germany, local automakers made strides, but battling high battery costs and beefing up supply chains remains crucial. Across the globe, around one in four cars sold from January to March was a pure EV or a PHEV, marking the highest market share ever recorded in the first quarter, as revealed by PwC's analysis, exclusively shared with the German Press Agency.
Pure EVs (BEVs) experienced a considerable growth of 42%: Out of 16.7 million cars sold in 40 markets analyzed — which makeup the majority of global new car sales — there were 2.7 million BEVs and 1.4 million PHEVs. China led the charge in pure EV growth, increasing by 55% to 1.6 million, although German automakers saw a decrease in sales there. However, they boosted overall sales by 38% thanks to a strong performance on their home market in Germany, where EV sales jumped by 39%. Europe overall also witnessed a significant increase of around 28% to 574,000 BEVs.
Tesla faced some competition as models from German companies gained traction in Europe, pushing Tesla off the top spots in registration statistics. In China, models from Chinese brands Geely and Wuling seized the opportunity, just as Tesla held firm in the US with the Model Y and Model 3. In China, no German model made it into the top 10, while in the US, VW with the ID.4 and BMW with the i4 grabbed ranks 7 and 9, albeit trailing Tesla's leading models.
"German automakers have been bustling with productivity lately," remarks Felix Kuhnert of PwC. "They're delivering increasingly competitive models, shrinking the gap between themselves and the competition." Their dedication to quality and safety also resonates with many consumers, particularly in light of serious accidents involving Chinese brands. Nevertheless, they must find swift ways to lower their costs, especially for batteries.
Securing battery supply chains is a top priority. Given global developments, it's crucial for European manufacturers to secure their own battery supply chains in the future, as almost all batteries in today's electric cars come from Chinese manufacturers. To break free from this dependency, Europe needs to pour substantial investments into its own cell production and a supporting supplier infrastructure, says Jörn Neuhausen of PwC's consulting firm Strategy&. "With a market that moves in the billions to trillions in terms of revenue," he adds, "this is of significant macroeconomic importance."
In an effort to reduce battery costs, Germany is leading the charge in battery recycling, focusing on advanced black mass recycling. Major automotive companies like Volkswagen, BMW, and Mercedes-Benz are heavily investing in these technologies to ensure a sustainable supply of materials. Additionally, they're emphasizing efficient production processes, and there's a growing interest in exploring other battery technologies like lithium iron phosphate (LFP) to offset costs, despite energy density trade-offs.
To secure supply chains, localization, raw material diversification, regulatory support, and continuous investment in research and development are key priorities. Fleets adopting EVs and improving charging infrastructure are also essential for enhancing EV accessibility. With these strategies, German automakers hope to maintain their momentum and overcome the challenges posed by rapid market growth.
dpa
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- Felix Kuhnert of PwC comments on the productivity of German automakers, stating, "They're delivering increasingly competitive models, shrinking the gap between themselves and the competition."
- Jörn Neuhausen of PwC's consulting firm Strategy& emphasizes the importance of Europe securing its own battery supply chains, saying, "With a market that moves in the billions to trillions in terms of revenue, this is of significant macroeconomic importance."
- In an attempt to reduce battery costs, major automotive companies like Volkswagen, BMW, and Mercedes-Benz are investing in advanced battery recycling technologies.
- To maintain momentum and overcome challenges posed by rapid market growth, German automakers are focusing on localization, raw material diversification, regulatory support, and continuous investment in research and development, along with enhancing charging infrastructure and promoting EV adoption in fleets.
