The UK has secured its position as Europe’s leader in electric vehicle adoption, claiming a 29% market share that edges out France’s 27% and significantly surpasses Germany’s 13.9%, according to BloombergNEF’s latest Electric Vehicles Outlook.
The report combines pure battery electric and plug-in hybrid sales data to show Britain ranking second globally behind only China among major automotive markets.
ZEV mandate pressure drives UK success.
BloombergNEF analysts point to the UK’s Zero Emission Vehicle mandate as a key factor accelerating the transition from petrol and diesel vehicles. The policy requires 28% of all new car sales to be zero emission by the end of 2025.
Current figures show the UK sitting at around 22% – leaving automakers scrambling to meet targets.
The country’s openness to new Chinese brands like MG and BYD has also helped boost adoption rates, the report suggests. These manufacturers have brought competitively priced electric models to British showrooms at a time when traditional European brands often command premium prices.
Global EV sales surge despite US headwinds
Worldwide, BloombergNEF predicts 22 million battery electric and plug-in hybrid vehicles will be sold this year. That represents a 25% jump from 2024 levels.
Falling battery prices and an expanding range of affordable models are driving the growth.
China will account for two-thirds of those sales, with EV purchases there expected to exceed total vehicle sales in the United States. Europe claims the second-largest slice at 17% of global sales, while the US takes just 7%.
But the outlook isn’t entirely rosy.
Policy changes in the US have forced BloombergNEF to scale back previous projections. The roll-back of federal fuel-economy standards, phase-out of EV tax credits, and potential removal of California’s air quality authority all point to slower American adoption.
Despite these positive tailwinds, we see slower EV adoption in the short and long-term due in large part to the changing landscape in the US.
Colin McKerracher, head of clean transport and energy storage at BloombergNEF and the report’s lead author, highlighted the contradiction between global momentum and regional setbacks.
US passenger EV sales are still expected to climb from 1.6 million in 2025 to 4.1 million in 2030. But those revised numbers fall well short of BloombergNEF’s earlier forecasts.
Battery industry feels the squeeze
The slower US adoption rate has created ripple effects throughout the battery manufacturing sector.
BloombergNEF cut its battery demand outlook for the next decade by 8%. Battery plant utilization in China has already dropped below 50% as manufacturers built capacity for demand that’s now materializing more slowly than expected.
The oversupply situation is driving down battery prices – which should eventually benefit consumers but creates short-term challenges for manufacturers who invested heavily in production capacity.
Under BloombergNEF’s updated Economic Transition Scenario, EVs reach 56% of global passenger vehicle sales by 2035 and 70% by 2040. The previous forecast had them hitting 73% by 2040.
Even with rapid EV adoption, only 40% of the global passenger vehicle fleet will be electric by 2040 due to the time it takes to replace existing vehicles.
Range-extender EVs emerged as the fastest-growing powertrain segment last year. These vehicles use batteries and electric motors to drive the wheels but include small petrol generators to charge batteries while driving.
Sales jumped 83% in 2024, with more than 1.2 million sold globally as Chinese consumers embraced the technology that addresses range anxiety while maintaining electric driving for most journeys.
The UK’s strong performance comes as the country prepares for increasingly strict emissions targets and potential trade implications from its openness to Chinese EV brands.
