18 July 2025
Will global and European light-vehicle sales improve in 2025? Which models topped the Chinese and European electric vehicle (EV) charts? And what purchase incentives has the UK government introduced for battery-electric vehicles (BEVs)? Autovista24 special content editor Phil Curry discusses the week’s biggest news in The Automotive Update podcast.
In this week’s episode, Autovista24 joins forces with EV Volumes to assess the potential threats to global EV sales forecasts. Plus, a deep dive into the best-selling BEVs and plug-in hybrids (PHEVs) in Europe and China. Finally, a look at the UK government’s plan to introduce EV incentives.
The global and European EV landscape
Global light-vehicle sales are expected to grow by just 1.1% in 2025, down from a 1.8% increase forecast in March. This is due to weaker demand in Europe, trade tensions, and geopolitical instability. In contrast, EV sales, including BEVs and PHEVs, are set to rise by 19.8%, pushing their global market share to 23.6%.
In Europe, light-vehicle sales are forecast to decline by 0.3%. This is a downturn from the previously expected 0.7% growth. However, recovery is projected in 2026.. Tightening EU emissions rules, lower lithium prices, and growing pressure on carmakers to cut fossil fuel vehicle output may drive faster EV adoption, and even spark a price war.
Government incentives in major European countries, plus increased availability of affordable domestic and Chinese-built EV models, are expected to further support growth. EV sales in Europe are projected to grow in 2025, raising their market share to 25.3%.
In China, EVs are forecast to make up 51.4% of all light vehicle sales in 2025, up from 44.3%. Total light vehicle sales in the country are predicted to increase by 2.7%.
The leading European EVs
A pair of non-domestic models headed the European BEV and PHEV markets in May. The Tesla Model Y topped the BEV list, and the BYD Seal U ended up number one in the PHEV charts.
Volkswagen (VW) Group enjoyed strong month, with five models following Tesla. The Skoda Elroq ended up second, with the VW ID.4 in third.
In the European PHEV market, the consistently popular VW Tiguan ended the month in second place behind the BYD Seal U. Third spot went to the Volvo XC60, the best-selling PHEV in Europe so far this year.
Geely stretches legs in China
China’s BEV market has seen a shift in rankings through May 2025. After a close battle in April, May’s results saw the Geely Geome Xingyuan establish a clear lead in the monthly and year-to-date rankings.
In the PHEV segment, BYD secured six of the top 10 spots in the month. The BYD Song Plus led the rankings, with the Li Auto L6 in second. Other strong performers included BYD’s Song L, Qin Plus, and Seal 06 models.
Despite year-on-year volume declines in four of the first five months of the year, the Song Plus remains China’s best-selling PHEV. Topping the sales in May, the model has maintained a significant lead over the Qin Plus, which has also endured declining sales.
UK government’s EV incentive
The UK government has introduced new purchase incentives for BEVs, offering up to £3,750 (€4,331) off eligible models. Amounts rewarded will depend on vehicle sustainability. Less sustainable models receive a reduced £1,500 discount, while only vehicles priced at £37,000 or below are eligible.
The grant is tiered, based on the emissions generated during vehicle and battery production. This will be assessed in relation to the carbon intensity of the electricity infrastructure in a vehicles’ origin country.
According to the Financial Times, industry executives are concerned about the eligibility criteria, describing the system as confusing and potentially damaging to market confidence.
In addition to purchase incentives, the government has announced £63 million in funding to expand EV charging infrastructure.
