E-Mobility Gaining Momentum Worldwide – Germany Stages a Strong Comeback – Internal Combustion Engines in Decline
London (UK)/Brussels (Belgium) – The market for battery electric vehicles (BEVs) is picking up speed globally. In the second quarter of 2025, the industry saw year-on-year growth of over 30 percent. The main driver of this growth was China, which accounted for nearly two-thirds of global sales. Europe is also showing strong development – with Germany leading the way.
Global Powertrain Mix in Transition
The global market for battery electric vehicles (BEVs) is currently growing with increasing momentum. This is according to the Electric Vehicle Sales Review Q2 2025 published by auditing and consulting firm PwC (PricewaterhouseCoopers).
Worldwide BEV sales grew by a significant 33 percent in the second quarter compared to the same period last year. The strongest growth was seen in China, with a 42 percent increase. For the first time, more than two million vehicles were sold there in a second quarter. According to PwC, BEVs now account for 32 percent of the overall market in China.
In contrast, the U.S. market has lost momentum. BEV sales in Q2 2025 fell by 3 percent – the first quarterly decline since 2020. This was due to expiring tax incentives caused by stricter requirements for battery sourcing. Nevertheless, PwC analysts expect a “strong catch-up effect” in the U.S. market in Q3, before current support programs expire in September.
Europe: Strong Growth Amid Structural Challenges
In Europe, the numbers are also rising significantly: The five largest markets by volume – Germany, France, the United Kingdom, Italy, and Spain – recorded a combined 25 percent growth in BEV sales in the first half of 2025.
Spain stood out in particular, with an 84 percent increase. In contrast, France saw a 6 percent decline, which PwC says reflects the broader negative trend in the French automotive market. Denmark and Norway, outside the top five, also showed strong performances: Denmark with 47 percent growth and Norway with 36 percent, reaching a BEV market share of 94 percent.
At the same time, it’s becoming clear that the transition to e-mobility in Europe remains challenging. According to the European Automobile Manufacturers’ Association (ACEA), the market share of pure electric vehicles in the EU rose to 15.6 percent in terms of new registrations in the first half of the year, but this is still well below the level targeted as part of the mobility transition. Hybrid electric models continue to gain popularity and remain the most preferred powertrain type with a 34.8 percent market share.
In contrast, the combined market share of gasoline and diesel vehicles fell to 37.8 percent, compared to 48.2 percent in the same period in 2024.
Germany Celebrates BEV Comeback
After government incentives were phased out in 2024, the German BEV market made a strong recovery in the first half of 2025. With 249,000 new registrations in the first six months, volume increased by 35 percent. Plug-in hybrids also grew strongly in Germany, rising by 55.1 percent in the first half. Sales of pure internal combustion engine vehicles, however, plummeted. Gasoline vehicle registrations dropped by 27.8 percent between January and June 2025, while diesel vehicles declined by 23.2 percent.
Rare Earths Almost Entirely from China: Supply Chain Disruptions Make the Industry Vulnerable
Alongside the growing e-mobility market and technological advancements, PwC sees the supply of rare earth elements (REEs) as increasingly critical for electric mobility. A central issue is the geographical concentration of deposits: While many countries have none or only limited reserves, nearly 48 percent of global REE reserves are located in China, which also accounts for around 69 percent of global production. Europe is especially dependent, currently importing 98 percent of the rare earths needed for cars, aircraft, and medical technology from China.
In June 2025, the European Association of Automotive Suppliers (CLEPA) warned that the industry was already experiencing significant disruptions, reporting reporting that several factories in Europe had to shut down operations due to Chinese export restrictions.
According to PwC, battery recycling, the development of alternative supply sources, strategic supply contracts, and the research of substitute materials or new battery concepts should all be pursued as a response to Europe’s dependency on China.
Source: IWR Online, 01 Aug 2025
