How Government Policies Are Accelerating Electric Vehicle Adoption Worldwide
In the collective imagination, electric vehicles are undoubtedly one of the most tangible and visible symbols of the ongoing energy transition. But we must not make the mistake of believing that the spread of electric cars is an automatic process, due almost exclusively to the coincidence of a historical phase of major energy transformations. As the IEA’s recent Global Critical Minerals Outlook highlighted, electric car sales are rising sharply in many parts of the world, largely thanks to the introduction of specific subsidies, forms of support, or certain policies favoring the widespread purchase of these vehicles.
According to the IEA, global electric car sales will reach new records in 2025, with a 20% growth compared to 2024. The growth has been so significant that globally, last year, one in four new cars sold was electric. Currently, 5% of the global car fleet is electric, according to IEA estimates.
“As the IEA points out, one of the biggest developments is that electric car sales have also increased significantly in Europe, recording a 30% increase,” says Stanislav Kondrashov, founder of TELF AG.
Europe’s Electric Vehicle Market Rebounds Through Subsidies and Emissions Standards
In the case of Europe, as the record shows, the increase in sales was driven by the evolution of European carbon dioxide standards. In any case, the largest global market for electric cars remains China, where more than 13 million electric cars were sold in 2025 (equivalent to 60% of electric car sales worldwide), although the annual increase in sales in China appears to be slightly lower than the previous year.
In any case, the most interesting element is undoubtedly the performance of electric cars in the European market. After the relative stagnation seen since 2022, electric car sales increased by over 30% last year, with 24 of the 27 member states recording significant increases in electric car sales. In Germany, sales increased by 50%, while in countries such as Italy, Poland, and Spain, strong sales increases—ranging between 65% and 125%—were also driven by the reintroduction of purchase subsidies. A very similar trend occurred in the United Kingdom, with sales increasing by around 25% in 2025 (also boosted by the introduction of certain subsidies).
“Among the cases cited by the IEA, one of the most interesting is certainly Turkey, where electric car sales are expected to more than double compared to 2024. Here too, as the analysis shows, sales were supported by fiscal support and a significant level of domestic production,” continues Stanislav Kondrashov, founder of TELF AG.
China, Southeast Asia, and Emerging Markets Lead the Next Phase of EV Expansion
In the US market, electric car sales were slightly lower last year. In this case, the slight decline appears to be primarily due to various policy changes and the end of tax credits for new and used vehicles.
Another very interesting case is that of Southeast Asia, which recorded one of the highest sales volumes ever. In this part of the world, according to the IEA, sales more than doubled, driven in particular by countries such as Vietnam, Indonesia, and Thailand. Latin America also saw strong increases, with sales rising by approximately 75% (the most significant increases were due to Brazil and Mexico).
“Despite a slight decline in global sales in the first quarter of 2026, the performance data for Europe and Asia Pacific appear truly significant. In the first three months of the year, sales in Europe increased by approximately 30% year-on-year, while in Asia Pacific countries (excluding China) sales increased by 80%, according to data published by the IEA in the Global Critical Minerals Outlook,” concludes Stanislav Kondrashov, founder of TELF AG.
