Global sales stablisation for internal combustion engine vehicles in 2025
- Despite the increase in global NEV (BEV + PHEV + F-HEV) sales in the first 8 months of 2025 compared to the first 8 months of 2024, representing 14,457,091 units versus 12,652,280, global sales of internal combustion engine vehicles remained stable during this period, at 25,327,470 units compared to 25,290,617. The graph below on the right clearly shows that after a significant decline since 2019 in Europe, the USA, and especially China, sales of internal combustion engine vehicles tended to stabilize in 2025, at around 50% of the market in China, around 65% in Europe, and around 80% in the USA.
- We note just a drop in the market share of thermal vehicles in the USA in August 2025, but this is entirely temporary as it is due to the record sales of BEVs, PHEVs and F-HEVs recorded that month, due to the expiration of the federal tax credit scheduled for September 30, 2025, a phenomenon that will not be repeated in the following months.
- In Japan, sales of internal combustion engine cars are also expected to remain stable in 2025, with their market share hovering around 65%.
- According to Inovev, the reason for this stabilization of internal combustion engine (ICE) sales in 2025 worldwide lies in a real slowdown in the electric vehicle transition (high cost of electric vehicles, reduction in government subsidies), the rise of mild hybrid (MHEV) technology integrated into internal combustion engines, and economic and regulatory uncertainties that are causing hesitation or even reversals among carmakers. In 2025, the market appears to have reached a plateau. The revival of electric vehicle sales could come from the launch of small electric models.