Global sales of battery-electric and plug-in hybrid vehicles climbed 24% in May compared to a year earlier, reaching 1.6 million units, according to market research firm Rho Motion. The growth was driven largely by surging demand in China, where monthly electric vehicle (EV) sales topped one million units for the first time this year.
Chinese automaker BYD contributed significantly to the growth through aggressive expansion into international markets. “BYD’s exports to Mexico and Southeast Asia, along with Uzbekistan, have significantly boosted sales in these regions,” said Charles Lester, data manager at Rho Motion.
China’s EV sales rose more than 24% year-on-year to 1.02 million units, supported by strong domestic consumption and focused export efforts. In contrast, North American EV sales saw a much more modest rise of 7.5% to 160,000 units, amid waning incentives and regulatory uncertainty.
“The story this month with global vehicle sales is the continued chasm between Chinese market growth versus the faltering market in North America,” Lester said.
European sales grew 36.2% to 330,000 units, aided by fleet incentives in Germany and momentum in Southern Europe. However, concerns over new tariffs and fluctuating policies have impacted automaker strategies, with some companies withdrawing 2025 guidance due to the 25% import tariff in the U.S.
Meanwhile, Tesla’s Berlin-made Model Y continues to benefit from local production and insulation from U.S.-Europe trade tensions, though the EV leader faces increasing competition in its core markets. EV tax credits in the U.S. remain in place but are set to phase out starting in 2026, contributing to consumer hesitancy.
Sales in other regions jumped 38% to 150,000 units, highlighting the growing importance of emerging markets in the global shift to electric mobility.