Spain's EV Sales Double as Global Market Surges 25%, US Lags Significantly

Global EV Sales Surge, But Regional Disparities Emerge

The electric vehicle (EV) market is experiencing a significant uplift, with global sales climbing a robust 25% in the first eight months of 2025 compared to the same period in 2024, according to the latest analysis from Rho Motion. This translates to a substantial 12.5 million new EVs finding owners worldwide, encompassing both battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs). However, this impressive aggregate figure masks a complex and varied landscape across different geographical regions.

Europe Leads the Charge, Spain Soars

Europe, in particular, is demonstrating a remarkable appetite for electrification, with EV sales accelerating by 31% year-on-year. This surge is evenly split between BEVs and PHEVs, both seeing a 30% increase. The continent now accounts for 2.6 million electric vehicle sales. Within Europe, the growth story is even more compelling in individual nations. Germany and Italy have witnessed impressive gains of 45% and 41%, respectively. Spain stands out as a true star performer, with its EV sales having *doubled* – a staggering 100% increase! This exceptional growth in Spain highlights a proactive adoption of electric mobility, potentially driven by a combination of consumer enthusiasm and favorable local policies.

France Faces Headwinds, Tesla's European Stumble

Contrastingly, France, despite a promising influx of new models from manufacturers like Renault and other Stellantis brands, has seen its EV sales decline by 6% this year. Even Tesla, a dominant force in the EV sector, appears to be feeling the pinch in Europe. July saw a significant 40% drop in Tesla's sales on the continent, a trend that began earlier in the year with a 43% decline in January, all while the broader demand for EVs continues to grow. This suggests a shifting competitive dynamic or specific challenges faced by the American EV giant in the European market.

China's Growth Moderates Amidst Shifting Subsidies and Corporate Forecasts

China remains a colossal market for electric vehicles, with an additional 7.6 million new EVs purchased between January and August 2025. However, the pace of growth experienced a slowdown in July and August. This moderation is attributed to a strong sales performance in 2024, which was significantly boosted by government subsidies. Furthermore, a notable development from BYD, a key player in the Chinese EV market, includes a recent dip in profitability and a downward revision of its sales forecast by a considerable 900,000 vehicles, now projecting 4.6 million units. This signals a more mature and potentially more competitive market environment.

USA Trails Behind as Policy and Market Dynamics Converge

In stark contrast to Europe's rapid expansion, North America is experiencing more modest growth, with EV sales rising by only 6% over the first eight months of 2025. While August offered a glimmer of hope in the US, driven by the crucial IRS 30D clean vehicle tax credit (valid until the end of September), the overall picture is one of slower adoption. This sluggishness can be partly attributed to policy decisions implemented by the Trump administration and certain Republican factions in Congress. These included the rollback of business tax incentives, the rescission of EPA penalties for fleet emissions, and a reduction in funding for charging infrastructure – policies that appear to have created an anti-EV climate, hindering broader market penetration.

The Rise of the Used EV: Affordability and Accessibility Drive Demand

A burgeoning and increasingly significant segment of the EV market is the pre-owned sector. Used EVs are rapidly becoming more attractive, with their prices frequently falling below comparable gasoline-powered vehicles. This affordability is a game-changer, opening the door for a wider range of consumers to embrace electric mobility. The rapid advancements in battery technology, leading to extended driving ranges, are also playing a crucial role. As newer EVs with longer ranges become the norm, older models become more accessible, creating a virtuous cycle for the used market. Cox Automotive reports a 40% year-on-year increase in used EV sales in July, signaling robust consumer interest. While still a small fraction (2%) of the overall used car market, the availability of leased vehicles returning to the market and trade-ins are fueling this growth. Previously, new EVs carried a premium of several thousand dollars. Now, the used market is inverted, with falling prices driven by swift technological progress, especially in battery tech. The jump from EVs with sub-200-mile ranges to the current 300-mile standard, with 400-mile ranges on the horizon, is fundamentally reshaping consumer perceptions and purchasing decisions. The emergence of more budget-friendly new EVs under $40,000 also exerts downward pressure on used EV prices.

Tesla's Used Market Woes and Federal Incentives Boost Affordability

Tesla, given its long-standing presence and significant market share in the US, is experiencing a notable price depreciation in its used models. This is a direct consequence of heightened competition and the influx of vehicles. Compounding this, federal incentives are making used EVs even more attainable. Buyers can now access tax credits of up to $4,000 for vehicles priced under $25,000. This initiative, part of the Biden administration's push, expires at the end of September, creating a surge in demand for pre-owned electric cars. Furthermore, many of these used EVs are relatively new and still under warranty, alleviating concerns about the potentially high cost of battery replacements. This combination of factors is effectively dismantling long-held hesitations about EV reliability for a new wave of buyers.

Used EV Appeal Diverts Buyers from New Models

The growing appeal of the used EV market is having a tangible impact on demand for new electric vehicles. Analysts like Tom Narayan from RBC Capital Markets point to data suggesting that the attractive pricing of pre-owned EVs is drawing consumers away from purchasing new models. Narayan emphasizes that price, rather than range anxiety or political sentiments, is the paramount factor. Tesla is a prime example of this trend, with many owners opting to sell their leased vehicles and explore alternatives from General Motors, Ford, or Hyundai. Some also choose to switch brands due to public statements made by Elon Musk, adding another layer to consumer decision-making beyond pure economics.