Record-breaking shift towards electric vehicles: nearly a quarter of all cars on the road are electric now
In the global auto market, nearly one out of every four cars sold in the first quarter of 2025 is an electric vehicle or a hybrid. A report by PwC reveals this as the highest possible market share ever recorded in a first quarter.
Electric vehicles (BEVs) saw a massive boost with a 42% increase: Of the 40 markets analyzed, which account for the majority of global new car sales, there were 2.7 million BEVs and 1.4 million plug-in hybrids (PiHs) out of a total of 16.7 million cars sold in the first quarter.
China again spearheaded the electric vehicle revolution, rising by 55% to 1.6 million units. German automakers, however, lost significant ground in China, selling a third fewer cars compared to the previous year. Despite this, they overall increased by 38%, thanks to a strong performance on their home market in Germany, where electric vehicle sales climbed by 39% after experiencing a longer slump. Europe saw a significant increase as well, with BEV sales climbing approximately 28% to 574,000.
In Europe, vehicles from German companies are gaining terrain and partly displacing Tesla from the top spots in registration statistics they held previously. In China, Chinese brands Geely and Wuling have also taken over top positions. In the U.S., Tesla's Model Y and Model 3 remain dominant in the market. In China, no German model makes it into the top 10, while in the U.S., VW with the ID.4 and BMW with the i4 manage to rank 7th and 9th - albeit far behind the two Teslas.
"Despite geopolitical uncertainties and escalating trade barriers, German automakers have stepped up their game recently," said Felix Kuhnert of PwC. "They are launching increasingly competitive models and closing the gap with their rivals." They also benefit from their "unwavering focus on quality and safety," which increasingly matters to consumers - even amidst concerns surrounding serious accidents involving Chinese brands. However, they must swiftly find ways to reduce their costs and prices, particularly for batteries.
Jörn Neuhausen of PwC's Strategy& consulting firm emphasized the importance of batteries in future market developments. It will be essential for European manufacturers to secure their battery supply chains in the future. He observed that today, batteries from Chinese manufacturers are used in almost all electric cars. "To become more self-reliant, Europe must invest heavily and intelligently in its own cell production and a corresponding supply infrastructure," said Neuhausen. "Given a market that moves in the billions to trillions, this is of high macroeconomic significance."
- The increased focus on science and technology in the auto industry is evident as electric vehicles (EVs), such as Tesla, are becoming more prevalent, with profit margins potentially growing due to the rising demand for EVs and hybrid vehicles.
- The global market share of EVs sales, particularly Tesla's models, is expected to be influenced by a variety of factors, including environmental-science advancements, financial investments, and technology improvements.
- European manufacturers, including German automakers, are investing heavily in the production of competitive EVs, aiming to reduce their costs and prices, particularly for batteries, to increase their market share and profitability.
- However, facing competition from Chinese brands like Geely and Wuling in Europe and Chinese battery manufacturers, European automakers must also secure their battery supply chains to ensure their continued growth and success in the EV market.
- The significant investment in EV technology, battery production, and supply infrastructure is of high macroeconomic significance, as it has the potential to create new jobs, boost economic growth, and contribute to a more sustainable macroeconomic environment in Europe and beyond.
