Worldwide electric and hybrid sales have reached a significant milestone, now accounting for a quarter of all new car sales globally in 2025. This pivotal shift, detailed in a recent Pew Research Center analysis released on May 29, 2026, highlights the accelerating transition within the automotive industry towards electrified powertrains, even as regional adoption rates vary dramatically.
The Pew Research Center’s findings, based largely on data from the International Energy Agency (IEA)’s “Global EV Outlook 2026” report, underscore a substantial increase from just 4% of new car sales in 2020 to 25% in 2025. This represents approximately 21 million new electric and hybrid cars sold worldwide last year. While the global average signifies robust growth, the U.S. market lags, with electric and plug-in hybrid vehicles making up only 10% of new car sales in 2025, a figure that has remained flat from 2024 and is well below the global benchmark. This U.S. performance comes despite a Pew Research Center survey in March indicating that 32% of U.S. adults are very or somewhat likely to consider an EV, and 44% a hybrid, potentially influenced by sharply higher gas prices amid the U.S. military conflict against Iran.
Global EV and Hybrid Sales Surge
The disparity in adoption is stark when examining individual countries. Norway stands as a clear leader, with an astonishing 97% of its new car sales in 2025 being electric or hybrid vehicles. This dominance is no accident, stemming from decades of proactive government incentives, including tax exemptions for EV purchases from 1990 to 2022, and ongoing perks like reduced tolls and parking. Coupled with some of the world’s highest gas prices, exceeding $9 per gallon, Norway’s policy framework has created a highly fertile ground for electrification.
Beyond Norway, seven other countries saw at least half of their new car sales in 2025 comprise EVs or plug-in hybrids. These include Denmark (71%), Nepal (68%), Iceland (62%), Sweden (61%), the Netherlands (58%), Finland (57%), and China (53%). The Netherlands, a relatively small nation, notably boasted approximately 207,000 public charging points in 2025, the fourth-most globally, demonstrating a significant investment in charging infrastructure. China’s ascent is particularly impactful given its market size; its 53% share marks a 5-percentage-point increase from 2024, driven by over $230 billion in government support between 2009 and 2023, making EVs in China relatively affordable at a median price of $43,000 in 2025.
“The global automotive landscape is undergoing a profound transformation, with electrification no longer a niche but a significant and growing segment of new vehicle sales worldwide. However, the pace and drivers of this change are highly localized, reflecting diverse policy environments, consumer preferences, and infrastructure investments.”
The IEA data reveals that all 59 countries for which 2025 data was available experienced an increase in the share of electric and hybrid sales since 2020. Vietnam, for instance, saw its share soar from 0% in 2021 to 40% in 2025, while Iceland’s share, after a slight dip in 2024, rebounded to 62% last year. This global trend indicates a broad, albeit uneven, commitment to automotive electrification.
Impact Analysis
The surge in worldwide electric and hybrid sales has profound implications for the automotive industry. Manufacturers are increasingly prioritizing EV development and production, shifting R&D budgets and supply chain focus. This global embrace of electrification also puts pressure on countries with lower adoption rates, like the United States, to accelerate their transition. The flat 10% share of EV and hybrid sales in the U.S. for 2024 and 2025 suggests that despite consumer openness, barriers such as charging infrastructure availability and vehicle cost remain significant challenges. Policy decisions, as exemplified by the European Union’s 2035 ban on new gas-powered car sales, are clearly pivotal in shaping market dynamics.
The contrasting performance between countries like Norway and the U.S. underscores the critical role of government incentives and infrastructure investment. While the U.S. sold 1.5 million new electric and hybrid cars in 2025, the second-highest volume globally after China, its market share indicates that the sheer number of sales is not translating into a dominant percentage of the overall market. This suggests a need for more comprehensive strategies to overcome consumer hesitancy and expand charging networks. The affordability factor, highlighted by China’s median EV price of $43,000, also plays a crucial role in broader market penetration.
What’s Next
Looking ahead, the trajectory of worldwide electric and hybrid sales will likely continue its upward trend, albeit with ongoing regional variations. The European Union’s 2035 mandate will further solidify the market for electrified vehicles across its member states. For the U.S., the challenge lies in translating consumer interest into actual purchases by addressing infrastructure gaps and potentially re-evaluating incentive structures. The ongoing conflict against Iran and its impact on gas prices could serve as a continued catalyst for consumers to consider alternatives, but sustained growth will require more fundamental shifts.
The IEA’s future reports will be critical in tracking these developments, providing insights into whether the U.S. can narrow the gap with global leaders or if the divergent paths in electrification will become more entrenched. The competition among automakers to produce more affordable and efficient EVs, coupled with governmental efforts to bolster charging networks and offer compelling incentives, will define the next phase of this automotive revolution.
The global automotive industry is at an inflection point. The fact that a quarter of new cars sold worldwide are now electric or hybrid underscores a fundamental, irreversible shift. While some nations are accelerating towards a fully electrified future, others face the challenge of catching up to avoid being left behind in this transformative era of mobility.
