One in four cars sold worldwide in Q1 was electric or hybrid, survey shows

MUNICH: Global sales of fully electric vehicles (BEVs) and plug-in hybrids (PHEVs) achieved a record market share in the first quarter of 2025, making up about a quarter of total car sales worldwide, according to a study by management consultants PwC.

In total, 2.7 million BEVs and 1.4 million PHEVs were sold across 40 major markets, representing a 42% increase in BEV sales year-on-year. Overall, 16.7 million vehicles were sold in the quarter.

China led the growth in BEV sales, with a 55% increase to 1.6 million units.

However, German automakers saw a sharp decline in sales in China, down by a third. Despite this, they managed a 38% increase in BEV sales overall, driven by a 39% surge in their domestic market, Germany.

Across Europe, BEV sales grew by 28%, reaching 574,000 units.

German carmakers gained market share in Europe, with some models overtaking Tesla in the registration rankings. In China, local brands such as Geely and Wuling achieved similar results, surpassing Tesla.

However, Tesla still leads the US market, with its Model Y and Model 3 holding strong positions. No German model made it into China's top 10.

Despite progress, industry expert Felix Kuhnert from PwC highlights that German automakers must reduce costs and prices, especially in battery production, to remain competitive.

However, he praised German manufacturers for increasingly bringing competitive models to market, narrowing the gap with rivals.

Their "uncompromising focus on quality and safety" is becoming more important for many consumers, Kuhnert said, adding this was especially important "in light of severe accidents involving Chinese brands."

Additionally, securing battery supply chains is crucial for Europe's independence, according to PwC's Jörn Neuhausen, who pointed out the dominant share of Chinese batteries in electric cars.

He stressed the need for Europe to invest in its own battery production and supply infrastructure to compete globally.