The Old World remains one of the most stable pillars of global demand, but a full transition by 2035 will not happen.
The global electric vehicle market has entered a more complex phase. Growth continues, but the driving forces have changed. The momentum increasingly comes from emerging markets and individual European countries, while some regions in North America and China are showing signs of instability caused by government policy. As a result, the electric vehicle market is characterized more by diverging interests than by uniform growth.
Data from the past year underscores that electrification remains a structural issue. More than a quarter of new cars sold worldwide are now electric, compared to less than 3% in 2019. However, the sources of this growth and the manufacturers benefiting from it have changed significantly over the past year.
Europe remains one of the most stable pillars of global demand for electric vehicles. In October 2025, electric vehicle registrations in Europe (combined in the EU, EFTA, and the UK) increased by 33% compared to the same period last year, raising the market share of electric vehicles to just over 20%. A rapid increase in plug-in hybrids was also observed, while registrations of internal combustion engine vehicles sharply declined.
A similar trend is observed in the European Union. In the first ten months of 2025, electric vehicles accounted for 16.4% of new passenger car registrations, compared to 13.2% the previous year. Spain, France, Germany, and the Netherlands remain key players in this growth, combining incentives, the deployment of charging stations, and broader consumer confidence in electrification.
The growth of the European market also reflects a shift in brand dynamics. Chinese manufacturers continue to increase their market share, with BYD among the fastest-growing brands. At the same time, established European groups have strengthened their electric vehicle portfolios. Models such as the Tesla Model Y, Škoda Elroq, and Renault 5 demonstrate how competition now spans the premium, mid-range, and compact segments.
However, progress in Europe is uneven. Electric vehicles still lag behind internal combustion engine vehicles and mild hybrids in total monthly sales volumes. In several markets, vehicles with upgraded powertrains continue to lead in sales volumes, indicating a gradual transition rather than a sudden shift.
As reported, the European Union has abandoned plans to require automakers to fully transition to electric vehicles by 2035—one of the key environmental measures—amid a crisis facing the automotive sector in Europe. After this deadline, manufacturers will be allowed to continue selling a limited share of new vehicles equipped with internal combustion engines or hybrid powertrains, provided they meet a number of requirements, including compensating for CO₂ emissions, the European Commission clarified.
"The goal remains the same, and the changes are actually a pragmatic reflection of reality considering consumer readiness and the difficulties automakers face in bringing 100% electric vehicles to market by 2035," said European Commissioner Stefan Sejourne.
Two years after the decision to end sales of new gasoline and diesel vehicles by 2035, the European Union is ultimately adjusting its position. The phase-out of internal combustion engines was supposed to be one of the key symbols of the ambitious "European Green Deal." However, the context has changed as the automotive market slows down. The European automotive industry is "on the brink of collapse," warned Stefan Sejourne in March. Sales of electric vehicles are growing more slowly than expected, while Chinese competitors are rapidly increasing their market shares.
At the same time, the European Commission announced on Tuesday the provision of €1.5 billion in interest-free loans to companies producing electric vehicle batteries in Europe as part of a large-scale plan to support the automotive sector. Among other measures in this plan are incentives for the "greening" of corporate fleets, support for the development of small European electric vehicles, and the introduction of "European preference," meaning commitments to use "made in Europe" components in supply chains.
For several months, a number of member states and influential lawmakers have pushed Brussels to reconsider a key measure of the "Green Deal," adopted during Ursula von der Leyen's first term—the cessation of sales of new vehicles that are not 100% electric by 2035. Germany, supported by Italy and Poland, insisted on resuming discussions and allowing sales of internal combustion engine vehicles after 2035.
