Key Takeaways
- ZEV Declaration signatories surpassed 3.6 million EV sales in 2025, a robust 30% year-on-year increase.
- Türkiye surged into the top five signatory countries by volume with a 151% YoY increase, while Colombia and Mexico reached record market shares
- Norway nears the finish line with an 89% EV market share, with Denmark and the Netherlands surpassing 60%
Electric vehicle adoption reached new milestones in 2025
The electric vehicle (EV) transition continued to gain significant ground in 2025, countering persistent headlines of a global slowdown. This steady progress is particularly evident among the national government signatories to the Zero Emission Vehicles (ZEV) Declaration, who collectively represented 23% of the global light-duty vehicle market last yearIn 2025, these countries reached a major milestone as collective EV sales climbed to approximately 3.6 million vehicles, illustrating a robust 30% increase from last year.
As illustrated in Figure 1, this growth trajectory was nearly universal, with eight out of the top 10 signatories expanding their absolute EV sales volume. The United Kingdom (736,019) and France (473,773) led the charge for the third year in a row, while Spain (242,208) and Türkiye (241,991) surged into the top five. In fact, Spain doubled its registrations in 2025, and Türkiye delivered a staggering 151% year-over-year surge.
Figure 1: Top ten electric light-duty vehicle markets among national government signatories (2024-2025)
Source: EV Volumes, March 2026; Automotive Distributors’ and Mobility Association (ODMD) for Türkiye, February 2026; Y Segment for India, February 2026
The rapid acceleration in both Spain and Türkiye was underpinned by a combination of domestic production and financial incentives. In Spain, the MOVES III framework offered direct purchase subsidies for EVs and infrastructure deployment, in addition to registration tax and local road tax incentives. While the program expired at the end of last year, they intend to launch a new program that modernizes and centralizes incentives for easier adoption.
Simultaneously, Türkiye’s surge has been anchored by a national industrial strategy that has transformed the country into a regional EV powerhouse. Central to this is the state-backed Togg brand, which accounted for 16% of domestic EV sales in 2025, and benefits from streamlined regulatory processes and guaranteed public sector procurement. Pairing strategic production investments with a ‘domestic first’ ecosystem supported by preferential tax rates and VAT exemptions, Türkiye’s adoption rates have quickly risen.
Elsewhere, several signatories are excitedly nearing the finish line as EVs capture more of the market. Norway continues to lead this final stretch, reaching an 89% EV share, a 9 percentage-point leap that brings the country closer to its 100% by 2025 ZEV target. The most significant acceleration last year was seen by Denmark (66%) and the Netherlands (60%), whose market shares surged by 18% and 20% respectively, signaling a rapid move toward full market penetration. Sweden (59%), Iceland (57%), and Finland (53%) each now measure more than half of all new registrations as electric.
Figure 2: Global electric light-duty vehicle sales share of national government signatories (2024-2025)
Source: EV Volumes, March 2026; Automotive Distributors’ and Mobility Association (ODMD) for Türkiye, February 2026; Y Segment for India, February 2026
The United Kingdom’s ZEV mandate has proven to be a resilient policy anchor, with sales comfortably exceeding the 22% EV sales target in its first year. The government has reaffirmed the 100% ZEV mandate for 2035 and reinstated the 2030 phase-out for non-hybrid internal combustion engine vehicles. To support the industry through this transition, flexibilities like the banking and borrowing mechanism were extended through 2029, giving more pathways for reducing emissions in the near-term as they work toward the ambitious long term targets.
However, this stability is not universal, as several major markets have recently recalibrated their long-term targets. Canada has repealed its 100% by 2035 ZEV sales target, replacing it with a new trajectory aiming for 75% sales by 2035 and 90% by 2040, while shifting focus to a domestic incentive program. Similarly, to ease near-term compliance pressure, the European Union introduced a three-year emissions averaging window (2025–2027) early in 2025, later followed by a European Commission proposal to shift the 100% ZEV target for 2035 to a 90% tailpipe reduction supplemented by low-carbon fuel and green steel credits. These diverging pathways suggest that while global momentum toward electrification remains, the specific timelines in many regions will remain in flux over the coming year.
Emerging economies lead the next wave of global market expansion
The center of gravity for EV adoption has shifted over the last year as emerging markets made substantial gains in market penetration. Within Latin America, cohesive policy frameworks continue to drive significant progress as many leapfrog ahead. Mexico recorded a three-fold increase in its EV sales share, rising from 2% in 2024 to 6% in 2025. This was largely driven by the implementation of modernized CO2 emission standards for light-duty vehicles and an increased supply of affordable models.
Colombia reached a 9% market share, driven by fiscal incentives such as VAT reductions and annual vehicle tax caps. Similarly, Chile saw its market share triple to 3%, fueled by its Energy Efficiency Law and targeted investments that nearly doubled charging infrastructure capacity in early 2025.
In 2025, India achieved a 4% market share for new light-duty vehicles, supported by national manufacturing incentives and reduced import duty rates that have expanded model availability. To move beyond early adoption, India is increasingly prioritizing
A new architecture for global mobility
The evidence from 2025 has dispelled the narrative of a global slowdown, instead illuminating the tangible growth of the ZEV transition. The collective progress of ZEV Declaration signatories underscores that adoption is no longer confined to a few leading markets but is representative of diverse global momentum, where industrial strategy, supply-side regulations, and climate policies are increasingly inseparable. The critical step in ensuring this global transition remains shift, equitable, and permanent is to maintain their long-term commitments to a 100% electric transition.
*This figure represents national signatories where there is information available. Data is unavailable for: Armenia, Azerbaijan, Cape Verde, Costa Rica, Cyprus, Dominican Republic, El Salvador, Ghana, Kenya, Liechstenstein, Malta, Morocco, Nigeria, Paraguay, Rwanda, the Holy See, Uruguay.
