The year 2025 marked a significant milestone in the global transition to electric vehicles. Consumers purchased approximately 20,53 million electrified vehicles, including battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and fuel cell vehicles. This figure represented a 26% increase year-on-year, indicating continued demand for electric vehicles despite a deceleration in growth rate.

The following table presents the top 10 automotive brands by market share for battery electric vehicles and plug-in hybrid electric vehicles globally in 2025, compiled by TrendForce, a global analysis and consulting firm.

TrendForce forecasts a potential cooling of the market in 2026. Global electric vehicle sales are projected to reach 23,4 million units, representing growth, but at a slower rate of around 14%. The primary reason is China's market maturing, which is causing growth momentum to slow.

China remains the world's largest electric vehicle market, accounting for approximately 66% of total sales in 2025. However, its growth rate reached 24%, slightly below the global average. Western Europe, meanwhile, experienced a strong year, with sales increasing by almost 30%, the region's highest level since 2022.

The 2025 sales ranking saw a notable change at the top. BYD surpassed Tesla for the first time, becoming the world's top-selling battery electric vehicle manufacturer. BYD's sales increased by 25% over the past year, while Tesla's decreased by approximately 9%. Analysts attribute Tesla's challenges to a lack of new models or sufficiently appealing upgrades to attract customers.

The BYD Han L electric vehicle model. Source: BYD

Other Chinese automotive brands also accelerated their growth. Geely climbed to the 4th position globally, doubling its market share from 3% to 6%. The brand's success is largely due to its affordable Xingyuan model, priced under 100.000 yuan (approximately 14.500 USD). Even technology firm Xiaomi entered the race, increasing its market share from 1% to 3% in just one year, placing it 8th globally.

Meanwhile, Volkswagen faced more challenges. Despite an increase in overall vehicle sales, the German automaker lost market share in China. To improve the situation, Volkswagen launched a new brand specifically for the Chinese market and partnered with XPeng to develop new models. The first products from this alliance are expected to appear on the market soon.

In the plug-in hybrid electric vehicle segment, BYD maintained its lead with a 31,5% market share. However, the brand recorded a decrease in sales volume for the first time. Meanwhile, Li Auto, previously in 2nd place, experienced a difficult 2025 with sales dropping by 30%, falling to 5th position.

Electric vehicle support policies also underwent changes in 2026. China is expected to adjust subsidies from a fixed amount to a percentage of the vehicle price, which could make lower-priced models less attractive. In the US, federal subsidies for electric vehicles have ended completely. Conversely, Germany is restoring its support program without distinguishing the vehicle's country of origin, opening opportunities for imported models from China.

Developing electric vehicles is becoming increasingly complex, as modern models are essentially "computers on wheels", requiring substantial quantities of memory chips and electronic components. Although these chips constitute only 1-5% of total production costs, any fluctuations in price or supply can cause production delays, a challenge the industry has faced in recent years. Automakers are therefore striving to secure stable component supplies to maintain production and software updates.

The year 2026 is projected to be a period of significant volatility for the electric vehicle industry. The global market is gradually maturing, with many brands launching more affordable models, while some manufacturers are beginning to withdraw from the electrification race. Concurrently, there is a clearer trend of global differentiation, with some countries continuing to promote electric vehicles while others revert to prioritizing fossil fuels.

Ho Tan (according to ArenaEV)