The global plug-in car market witnessed a significant surge in 2025, with sales reaching an impressive 20.7 million units, according to Benchmark Mineral Intelligence. However, the U.S. market experienced a notable slowdown, marking a stark contrast to the rest of the world. While plug-in vehicles gained popularity worldwide, North America faced a decline in sales, primarily due to the absence of EV incentive programs in the U.S. and Canada. This shift in growth dynamics was evident as the 'Rest of World' category saw a remarkable 48% increase, while Europe grew by 33%. China, despite a slight cooling in pace due to rising taxes, still contributed significantly to the global sales figures. The U.S. market's decline was partly offset by Mexico, which witnessed a 29% surge in plug-in sales. The end of the U.S. federal tax credit had a direct impact on sales, causing a spike just before its termination, followed by a sharp decline. Canada also faced a 41% drop in plug-in sales due to the loss of its EV incentive program. Benchmark predicts a 29% decline in U.S. plug-in sales in 2026, attributing it to limited incentives, lack of supportive legislation, and manufacturers scaling back on electrification investments. However, some states are stepping up with their own EV buying incentives. China's plug-in vehicle growth is showing signs of slowing down after years of boom, but the market still saw solid gains in 2025. Japan's plug-in market grew modestly, while South Korea experienced a 50% increase, driven by incentives and new plug-in models. Overall, despite regional variations, the global trend towards electric and electrified sales remains strong, with buyers worldwide expressing their interest in plug-in vehicles.
