Rising Adoption of PHEVs and EVs in the US - China Leads - US Needs to Increase Efforts
The U.S. electric vehicle (EV) market is experiencing a dynamic shift, with growing sales and expanding model options, but facing challenges in infrastructure development and technological catch-up, particularly when compared to global leaders like China.
### Challenges in the U.S. EV Market
EVs accounted for approximately 9.6% of new light-duty vehicle sales in Q1 2025, a slight increase year-over-year but down from the previous quarter. This figure pales in comparison to China’s over 50% EV market share[1][3]. The U.S. added only one new public charging port for every 42 newly registered EVs in early 2025, highlighting a significant bottleneck in infrastructure[1].
U.S. automakers also face challenges of catching up technologically and scaling production in a competitive global environment where Chinese manufacturers have already leveraged massive domestic demand and economies of scale[2]. Additionally, U.S. manufacturers navigate less predictable regulatory conditions compared to the consistent, strategic government support seen in China[2].
### Opportunities in the U.S. EV Market
Despite these challenges, there are promising signs for the U.S. EV market. There are now 149 electric models available in the U.S., providing consumers more options than in previous years and potentially accelerating adoption[1]. U.S. EV sales grew by 9% year-over-year to about 30,500 new vehicles in Q1 2025, indicating steady demand[1].
Gas-powered vehicle market share continues to decline, down 23 points since 2016, creating a market opening for EVs[1]. Potential for infrastructure expansion remains a critical area for investment that could unlock broader EV adoption.
### Comparison with China and Other Countries
China leads globally, with EV sales surpassing 11 million units annually, more than half of global sales. BEVs alone accounted for around 31% of China’s total passenger car sales in mid-2025, with overall EV share around 53% in May 2025[2][3]. Chinese automakers like BYD have overtaken Tesla in global BEV sales, benefiting from early, sustained investment in electrification and a huge domestic market to scale up production[2].
Europe sold about 3.2 million EVs in 2024 and continues to grow steadily, supported by countries like Germany, the UK, Spain, and Italy[1][4]. Infrastructure is developing alongside sales growth, with countries implementing various incentives and investments to support electrification[4].
### Infrastructure Development
The U.S. infrastructure is expanding but not keeping pace with EV growth—only one new public charger per 42 new EVs signals significant room for improvement[1]. Although exact figures are not specified, China’s rapid EV adoption and production scale imply a more robust and widespread charging network supporting that market. Europe is also making strides in infrastructure development[4].
In summary, the U.S. EV market is growing but faces critical challenges in scaling infrastructure and catching up technologically with China, which dominates global EV production and sales through strategic investments and market scale. Europe maintains steady growth and infrastructure support. For the U.S., accelerating public charging infrastructure development and fostering technological innovation remain key to leveraging growth opportunities in the evolving EV landscape[1][2][3][4].
The U.S. industry must invest in infrastructure development to ensure a more robust and widespread charging network, as the current rate of one new public charging port for every 42 newly registered EVs is insufficient compared to global leaders [1].
U.S. finance institutions could capitalize on technology-driven solutions in the EV space, particularly in the area of battery manufacturing, where China has already gained considerable advantage through capital and economies of scale [2].
