Global electric vehicle race: China accounts for 57% of registrations, while Europe and the US are struggling to catch up in terms of "battery range" and "policies"

Thanks to the decline in internal combustion engine sales and the steady growth of electrified alternatives, in the first quarter of 2025, the global market share of pure electric vehicles climbed to 14.5%, and the trend of automotive electrification transformation remains unchanged. However, there are huge, obvious, and remarkable differences among continents, countries, and even regions in terms of transformation speed, scale, driving factors, and consumer acceptance.

According to a study by JATO Dynamics, an automotive industry data and consulting service provider, the global traditional internal combustion engine powertrain is being continuously replaced by new electrification technologies, and its market share has dropped significantly by 34.4 percentage points since 2019. Among various new technologies, pure electric vehicles have become the second-largest mainstream powertrain globally, followed by non-plug-in hybrid vehicles (including hybrid electric vehicles HEV and mild hybrid electric vehicles MHEV). Because they can relieve users' range anxiety and reduce dependence on charging facilities, they are more easily accepted by the market.

The study points out that although consumers' environmental awareness is constantly increasing, the key factors driving the growth of electric vehicles and squeezing the share of internal combustion engines are the strict regulatory restrictions on traditional fuel vehicles by governments around the world and the incentive policies for electric vehicles (such as purchase subsidies and preferential road rights). These measures have significantly enhanced the attractiveness of electric vehicles to consumers and accelerated the electrification process.

Regional Differentiation: China Leads, Followed by Europe and the United States

The global pure electric vehicle registration data clearly reveals the imbalance in the development of each country. In the first quarter, China contributed 57% of the global pure electric vehicle registrations, occupying an absolute dominant position; followed by European countries, accounting for 22%. The United States ranked third with a registration share of 12%. The registration volume of electric vehicles in other countries is still relatively low. For example, India accounts for 1.7%, South Korea accounts for 1.2%, and Turkey accounts for 1.1%, all less than 2%.

Core Differentiating Factors: Pricing and Technology Routes

The factors causing the uneven development involve political and social dynamics. However, from the perspective of the pure automotive industry, the significant difference in electric vehicle pricing among regions is one of the key differentiating points. China's price advantage is prominent. In the past six years, the price gap between pure electric vehicles and fuel vehicles has narrowed by 15%, making pure electric vehicles more competitive in price. In Germany (Europe's largest automotive market), the prices of both pure electric vehicles and fuel vehicles have increased by about 21% during the same period, maintaining a relatively stable price gap. Although the premium of pure electric vehicles in the United States has decreased, it is still high. In 2019, the premium of electric vehicles was as high as 44%, the highest in the world, and currently, the premium has dropped to about 31%.

The rapid growth of the penetration rate of pure electric vehicles in China is inseparable from its more affordable and competitive market prices. Behind this price advantage is the widespread application of low-cost lithium iron phosphate (LFP) batteries. As of 2024, 75% of the registered pure electric vehicles in China were equipped with LFP batteries.

Range and Charging: Divergence in Technology Paths

Focusing on battery technology and charging capabilities, regional differences are also significant. Although lithium iron phosphate batteries effectively reduce production costs, their low energy density limits the improvement of the driving range. To address consumers' range anxiety and concerns about charging convenience, the US and German markets are increasingly focusing on providing models with longer driving ranges. However, achieving long-range in the compact car segment with limited space and weight requires battery technologies with higher energy density (such as ternary lithium batteries), which directly affects the average selling price of vehicles.

In terms of charging speed, although China, Europe, and the United States have similar trends in shortening charging time, there are differences in specific goals. In the United States and Germany, the proportion of registered pure electric vehicles with a charging time of less than one hour continues to rise; while in China, the average charging time is still higher than this critical value.

All in all, the transformation to pure electric vehicles remains the most dynamic, transformative, and eye-catching process in the global automotive industry. Although the development direction is clear, the progress speed and strategies vary greatly in different regions.

As a cost-driven leader, China has firmly established its leading position globally, relying on efficient pricing strategies, strong industrial policy support, and the large-scale application of cost-effective technologies such as lithium iron phosphate batteries. This enables Chinese automakers to rapidly expand their scale and offer pure electric vehicle products with highly competitive prices.

In contrast, the United States is going through a strategic adjustment period. Although it occupies an important share in the global pure electric vehicle market, the United States is still struggling to address the challenges brought about by the insufficient charging infrastructure and the changing policy direction.

Meanwhile, Europe is at a "crossroads." Although it has long been a firm supporter of electrification, the recent debate around the feasibility and timeline of the 2035 ban on the sale of fuel vehicles reflects deep concerns about affordability, industrial competitiveness, and the readiness of the energy infrastructure. The results of these discussions will profoundly affect the development trajectory of the European pure electric vehicle market in the next decade.

Regardless of how regional differences and policy environments evolve, an indisputable fact has been established: pure electric vehicles have become the second-largest powertrain in global sales. China is leading the trend through economies of scale and cost advantages; Western markets are more focused on performance improvement, range breakthroughs, and technological refinement. The popularization of electric vehicles is an irresistible trend. The core uncertainty lies in: at what speed and in what way different regions will complete this transformation.

This article is from the WeChat public account "Automotive Market Insights", author: Zheng Li, published with permission from 36Kr.