The global shift to battery electric vehicles (BEVs) isn’t happening at the same speed everywhere—some regions are slowing down, even though the transition continues. However, a fascinating regional divide is emerging as consumer priorities, technological choices and policy shifts influence adoption strategies…
Overview
- Global BEV market share reached 14.5% in Q1 2025, driven by a sharp decline in combustion engines and a steady rise in electrified alternatives.
- China leads the BEV market with 57% of global registrations, followed by Enlarged Europe* (22%) and the U.S. (12%), while other countries remain below 2%.
- Regional differences stem from pricing and battery strategies, with China leveraging low-cost LFP batteries, while the U.S. and Europe focus on range and charging performance.
Powertrain evolution
As governments globally work towards achieving their environmental reduction ambitions, we can now start to see these efforts paying off. Transitioning from combustion engines to electric vehicles has dominated discussions in the automotive industry over the past decade as countries implement differing strategies and approaches to making the move. Looking at the last seven years, we can start to see the global market share of BEVs steadily increasing, reaching 14.5% of total vehicle volumes in the first quarter of 2025. This is just one of the key insights that emerge when we take a deeper look at the evolution of the powertrain mix over recent years. Additional considerations include:
- Combustion powertrains are in decline, having lost 34.4 percentage points since 2019, consistently replaced by new electrified technologies.
- Among these technologies, BEVs have emerged as the preferred choice, now ranking as the second most common global powertrain.
- Fully electrified vehicles are followed by “plug-free” electrified powertrains (HEVs and MHEVs), which are often the easiest choice for customers looking to avoid concerns related to range and charging infrastructure.
While consumers are certainly more environmentally conscious than ever before, a key factor that appears to be driving the increase in BEVs and the decline in combustion engines are the stringent regulations imposed by institutions on traditional vehicles. These regulatory pressures are encouraging manufacturers to accelerate the shift towards less polluting alternatives to avoid penalties. Financial incentives such as tax breaks, purchase subsidies, and access to restricted traffic zones further support this transition by making electrified vehicles more attractive to consumers.
* Enlarged Europe = EU countries + United Kingdom, Switzerland and Norway
BEV transition rates
A closer look at global BEV registration data by country reveals a stark imbalance. China dominates the landscape, accounting for 57% of all BEV registrations worldwide in Q1 2025. Enlarged Europe follows with 22%, and the United States comes third with 12%. All other countries individually represent less than 2% of global BEV registrations, including India (1.7%), South Korea (1.2%), and Turkey (1.1%).
Several factors contribute to these discrepancies, including political and social dynamics. However, from a purely automotive business perspective, one of the clearest differentiators is the pricing trend of electric vehicles across regions.
Impact of BEV versus ICE price gap
In China, the list price gap between BEVs and internal combustion engine (ICE) vehicles has narrowed significantly – by about 15% over the past six years – making BEVs often more affordable than their ICE counterparts. This is in stark contrast to Germany, where both BEV and ICE prices have risen by 21%, maintaining a relatively stable price gap. Meanwhile, in the United States, the BEV price premium, which was the highest globally at 44% in 2019, has decreased to around 31%, slightly below the German level.
These divergent trends help explain why BEV adoption in China has grown so rapidly, now representing nearly 30% of all passenger car registrations in the country.
Regional technology differences
A key factor behind China’s competitive pricing is the widespread use of lithium iron phosphate (LFP) batteries, which powered nearly 75% of all BEVs registered in the country in 2024. While LFP technology enables lower production costs, it also presents challenges in terms of energy density, making it harder to achieve long range, especially for compact products, an element that is particularly important to offset the “range anxiety” in Western markets.
This technological divergence is evident when comparing the average range of electric vehicles registered across regions. In particular, the U.S. and German markets are increasingly focused on offering longer ranges, a response to consumer concerns about range anxiety and charging convenience. Achieving these longer ranges requires more efficient battery technologies, especially in compact vehicle segments where space and weight are limited, with an impact on average prices.
Charging speed is another key technical area where regional differences emerge. Although all three markets show similar trends in improving charging times, their starting points and priorities differ. In the U.S. and Germany, a growing share of registered BEVs achieve best charging times under one hour, while in China, the average charging time remains above that threshold.
Conclusion
The transition to BEVs continues to be one of the most dynamic, transformative, and closely scrutinised developments in the global automotive industry. While the direction of travel is clear, the pace and strategy of adoption vary significantly across regions.
China has firmly established itself as the global frontrunner, driven by a combination of aggressive pricing strategies, strong industrial policy, and the widespread adoption of cost-effective technologies such as LFP batteries. This approach has enabled Chinese manufacturers to scale rapidly and offer BEVs at competitive price points.
In contrast, the United States is undergoing a period of strategic reassessment. Despite having a meaningful share of the global BEV market, the U.S. continues to grapple with infrastructure challenges and policy shifts.
Europe, meanwhile, finds itself at a crossroads. While the region has historically been a strong advocate for electrification, recent debates around the feasibility and timing of the 2035 combustion phase-out targets reflect growing concerns about affordability, industrial competitiveness, and energy infrastructure readiness. The outcome of these discussions will likely shape the trajectory of the European BEV market for the next decade.
Regardless of regional differences and evolving policy landscapes, one fact is now indisputable: BEVs have become the second most sold powertrain globally. China is setting the pace through scale and affordability, while Western markets are placing greater emphasis on performance, range, and technological refinement. If the shift to electric mobility is inevitable, the key uncertainty now is how quickly and on what terms different regions will embrace the change.
How JATO can help
At JATO, we specialise in providing in-depth, cross-country data and insights to help automotive manufacturers navigate market dynamics. Our global team of analysts leverage a wealth of data on volumes, registrations, powertrains, and market-specific trends to develop tailored reports and intelligence. With a dedicated team of consultants and analysts, JATO Advisory empowers OEMs to make data-driven decisions that align with their objectives to help them stay competitive in a complex and rapidly changing environment.
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