All that doom and gloom about the state of the electric vehicle market? That’s just an American problem. The rest of the world can’t get enough EVs, according to a new report from the International Energy Agency.
EV sales surpassed 20 million units last year, capturing 25% of the global market. Growth was highest in China and market share in other regions has also been picking up pace. In Latin America, for example, sales grew by 75%. Meanwhile, sales in the U.S. are stagnant, with EVs hovering around 10% market share.
The EV market has gone K-shaped, and automakers of all stripes — legacy and startup — had better pay attention.
Sales figures in the U.S. were held back last year by the One Big Beautiful Bill Act, which killed EV tax credits, along with policies that have prevented Chinese automakers from entering the market.
For startups like Rivian and Lucid, which are heavily invested in the U.S. market, it certainly makes for a more challenging road ahead. Legacy automakers are somewhat insulated since they can lean on more profitable fossil fuel vehicles — at least in the short term. But without a solid EV strategy, they stand to lose more global market share as consumer tastes and expectations shift.
