Two recent reports on electric vehicle (EV) sales show disparities in the EV market across regions. The International Energy Agency (IEA) detailed the global EV outlook for 2026, and Cox Automotive (Kelley Blue Book’s parent company) released its EV Market Monitor for April, reporting on United States numbers.
A Look Back at 2025
2025 was a good year for EVs. The IEA reports that one in four new cars sold globally in 2025 was electric. China accounted for more than half of the global increase in EV sales last year. By contrast, the U.S. held steady with sales just below 10% for 2025. This is due in part to the end of the federal tax credit in late 2025. EV sales account for 5.8% of all new-car sales in the U.S. as of Q1 of 2026.
EVs on a Global Scale
The IEA breaks down EV sales into three major markets: The U.S., Europe, and China. In a chart detailing the countries where EV sales exceeded 10%, countries in Latin America, the Middle East, and Southeast Asia showed rapid growth. Countries like Nepal benefit from Chinese EV imports, which helps account for their surge in EV sales.
China Dominates
China continued to dominate the EV market in 2025, accounting for six in 10 EVs sold globally. It’s estimated that 44 million EVs were driven in China last year. Growth in EV sales could be due in part to a trade-in program that offered consumers 20,000 Chinese yuan (about $2,750) to trade in an older vehicle for a new EV.
EVs Increase in the EU
EV sales increased by more than 30% in Europe in 2025. This is likely due to policy, as the EU aimed to reduce CO2 emissions by 15%. Germany is the largest EV market in Europe, with sales increasing by 50%. Norway leads the EV car market in terms of sales, with 97% of cars sold in 2025 being electric.
EV Sales Slow in the U.S.
In the U.S., new EV sales softened in April 2026. The report from Cox stated, “New EV sales declined amid broader weakness in overall vehicle demand, even as elevated fuel prices renewed consumer focus on efficiency.” Instead of gravitating toward EVs, American shoppers are considering more familiar, fuel-efficient gas-powered or hybrid vehicles.
American EV sales for new models were down 23.1% year over year and 6.2% month over month. Tesla remains the U.S. market leader, and Ford saw EV sales rise 23.9% from March 2026. Most U.S. automakers, however, posted month-over-month sales declines. The average price for a new EV also rose 1.4% from March 2026, totaling $55,211. This price is down 4.9% from April 2025.
What’s in Store
According to Cox, these insights reveal “a return to a more measured pace across the EV market.” U.S. shoppers are sensitive to fuel prices, inventory availability, and evolving incentive strategies. Compared to the rest of the world, EV growth is not as rapid in the U.S., and it doesn’t look like it will increase significantly in the near future.
For the rest of the world, it’s a different story. In Europe, government support of EVs is expected to increase as countries reinstate subsidy programs. Countries outside the three main markets could also see EV sales increase, depending on their access to more affordable Chinese EVs that aren’t available in the U.S. The longer the conflict in the Middle East continues, the more likely it is that fuel prices will rise. The IEA predicts global EV sales will reach 23 million in 2026.
Takeaways
The U.S. is not driving EV sales; China and Europe are, with emerging markets showing rapid growth. Affordability is a major factor in EV buying, as seen through incentives, pricing, and battery costs. What remains is a two-speed EV market: the U.S. is in the slow lane (for now), whereas EV adoption is being fast-tracked by most other countries.