The global electric vehicle (EV) market entered a new phase in 2025 as battery electric vehicles (BEVs) accelerated faster than plug-in hybrid electric vehicles (PHEVs), reflecting shifting consumer preferences and intensifying competition among automakers. While Tesla retained its position as the world’s top-selling EV brand, Chinese manufacturers continued expanding their influence across both vehicle segments.
Industry data shows that nearly 13.7 million battery electric vehicles were sold worldwide during the year, representing a sharp increase of 26.7% compared to 2024. Plug-in hybrid sales also grew but at a much slower pace, climbing 11.1% to just over 7.2 million units after experiencing explosive growth a year earlier.
Battery Electric Vehicles Pull Ahead
The biggest story of 2025 was the widening gap between fully electric cars and plug-in hybrids. Strong demand in China, combined with expanding model choices and improved charging infrastructure, helped battery electric vehicles outpace hybrids for the first time in several years.
China remained the largest EV market globally, accounting for almost 60% of worldwide BEV sales. Germany and the UK also recorded healthy growth, while the United States experienced a slight decline in all-electric vehicle deliveries, highlighting the differing pace of EV adoption across major markets.
Although plug-in hybrids continued to attract buyers in several countries, slower demand in China significantly affected global PHEV growth because the country represents more than 70% of the world’s hybrid market.
Tesla Model Y Remains the World’s Favourite EV
Despite growing competition, the Tesla Model Y continued to dominate global battery electric vehicle sales in 2025.
The electric SUV crossed the one-million sales milestone for another year, reaching more than 1.08 million deliveries worldwide. However, its sales declined compared to 2024, suggesting that newer rivals are steadily eating into Tesla’s market share. China remained its biggest market, followed closely by the United States.
The Tesla Model 3 secured second place, although it also recorded a year-on-year decline in deliveries. Both vehicles maintained strong global reach, selling across more than 75 markets.
Chinese Carmakers Continue Their Rise
If 2025 proved anything, it is that Chinese automakers are no longer just domestic success stories.
Eight of the ten best-selling battery electric vehicles globally came from Chinese brands. Models such as the Geely Geome Xingyuan, Wuling Mini, BYD Seagull, Xiaomi SU7, and several BYD crossovers rapidly climbed the rankings, driven largely by strong domestic demand and increasingly competitive pricing.
Several of these models are also preparing for broader international expansion, particularly into Europe, where competition in the affordable EV segment is expected to intensify.
BYD Continues to Rule Plug-in Hybrids
While Tesla led the battery electric segment, BYD remained the undisputed leader in plug-in hybrid vehicles.
The BYD Song Plus retained its position as the world’s best-selling PHEV, despite a decline in annual sales. The Chinese manufacturer occupied seven of the top ten positions in the global plug-in hybrid rankings, underlining its strength in electrified vehicles.
Newer models from brands such as Aito and Geely also posted impressive gains, indicating that competition within the hybrid market is becoming increasingly diverse.
A More Competitive EV Market Ahead
The numbers from 2025 paint a picture of an EV industry that is growing rapidly while becoming increasingly competitive. Tesla continues to set the benchmark in battery electric vehicles, but Chinese manufacturers are narrowing the gap with a broader range of products across multiple price points.
As governments continue promoting cleaner mobility and manufacturers expand their electric portfolios, 2026 is expected to bring even fiercer competition. With more affordable models entering international markets and consumer demand evolving, the race for EV leadership is far from settled.
