One in four new cars sold worldwide last year was electric, according to International Energy Agency (IEA) data cited by UBS, marking a landmark moment for the transition away from the internal combustion engine.

Global electric vehicle (EV) sales, which include both battery-only cars and plug-in hybrid models but exclude conventional hybrids that cannot be charged from a socket, exceeded 20 million units in 2025.

The IEA projects the share of electric cars in global new sales will reach 50% by 2035, even in the absence of additional policy support.

Despite the pace of sales, the overall electric fleet remains small relative to the total number of cars on the road: only around 5% of vehicles worldwide are currently electric, a stock level equivalent to roughly 1.2 million barrels per day of displaced oil demand.

China is the dominant force in the market by a considerable distance, accounting for 75% of global EV production and 53% of its own new car sales, equivalent to 13 million vehicles in 2025 and 13% of the total Chinese car stock.

Six out of every ten electric cars sold globally were sold in China.

Europe is the second largest market, with 4.3 million EVs sold and 27% of new car sales now electric, a sharp acceleration driven by tighter carbon dioxide emissions standards introduced in 2025.

The United States remains a laggard by comparison, with EVs accounting for just under 10% of new car sales, a figure that weakened in the fourth quarter following the expiry of federal tax credits.

Growth outside the three major markets is accelerating quickly, with EV sales rising around 50% in 2025 and volumes doubling across Southeast Asia.

Japan stands out as a significant outlier among developed economies, with EVs accounting for less than 3% of new car sales as consumers and manufacturers continue to favour conventional hybrid technology.

Norway retains its position as the global leader on market penetration, with electric vehicles making up 97% of all new car sales in 2025, a figure that illustrates how rapidly full electrification can progress given consistent long-term policy support.