Are electric cars losing popularity?

Although some media reports suggest interest in electric vehicles (EVs) has softened in certain markets due to high upfront costs and shifting consumer preferences, electric cars are not broadly losing popularity overall.

In fact, global EV sales continue to rise significantly year-over-year, with millions of units sold and increasing market share in many regions.

While demand growth has slowed or plateaued in places like the U.S., other regions such as China and Europe still show strong adoption and expanding EV market penetration.

In India too, electric vehicle sales and new model launches are climbing rapidly, indicating growing interest rather than decline. Overall, the long-term trend remains upward, even as the pace and regional patterns of growth evolve.

Current State: Growth Is Still Strong Globally

Global Sales Are Increasing
- According to PwC / Strategy&, Q3 2025 BEV (battery-electric vehicle) sales grew 35% year-over-year.
- Global EV sales (BEVs + PHEVs) grew by 18% in early 2025 vs 2024, per Rho Motion data.
- The IEA reports that more than 1 in 4 cars sold globally in 2025 is expected to be electric.
- In Q1 2025, BEV registrations reached a new high of 16% global market share, per Strategy&.
Long-Term Trajectory Looks Promising
- The IEA’s Global EV Outlook 2025 forecasts that, under current policies, EVs could make up over 40% of global car sales by 2030.
- Government spending on EV incentives is declining (subsidies are being phased out), but consumer demand and economies of scale are keeping EV adoption strong.

Signs of Softness or Challenges in Some Markets

While global growth is strong, there are some concerning signs in specific regions or manufacturers:

Consumer Concerns About Charging Infrastructure
- According to an EY Global Mobility report, “lack of charging infrastructure” remains a major concern, and demand is slowing in some places.
- Only a small increase in EV purchase intent — according to the same EY report, intent rose from 55% to 58% year-on-year, suggesting a plateauing of some of the early excitement.
Regional Slowdowns
- In Europe, IEA data suggests that though sales continue, growth has stalled in some markets due to fading subsidies.
- Tesla, one of the biggest EV makers, saw a 1.1% drop in global sales in 2024, its first annual decline in more than a decade.
- According to Ars Technica, while global EV sales grew by 25% in the first eight months of 2025, North America saw only 6% growth, indicating uneven adoption.
Infrastructure & Cost Pressures
- As subsidies phase out and battery costs remain a major component of EV prices, affordability could become a limiting factor for next-wave buyers. (IEA report)
- Charging infrastructure planning is becoming more complex: a recent academic study argues that many cities may struggle to scale up charging capacity fast enough to meet future EV demand.

Slowing Growth in Key Markets

Although the overall trend is still upward, several regions are showing slower demand or temporary setbacks:

🇺🇸 United States

EV market share still growing, but sales momentum is slowing compared with past years. Growth rates that once were 50–60 % annually are now in the single digits.
Policy uncertainty — such as ending federal tax credits and shifting regulations — has reduced buyer incentives and contributed to market cooling.
Some data show declines in specific quarters or brands (for example, a sales drop for Tesla in some markets).

🇪🇺 Europe

Electric vehicle growth remains strong in parts of Europe, but subsidy reductions and regulatory shifts are complicating matters.
Some reports suggest declining battery EV share and a rise in hybrids.

🇮🇳 India

EV sales are growing faster than the overall market, but electric vehicles still represent a small share of total cars sold amid strong demand for ICE and hybrid models.

Conclusion for these regions: Growth is ongoing but decelerating in some major economies; some markets are plateauing rather than declining.

Why Growth Is Slowing (But Not Disappearing)

Multiple Factors at Play

Industry experts identify several reasons for slower EV sales growth in certain places:

Reduced government incentives – tax credits and subsidies have been cut or phased out in key markets, reducing demand.
Charging infrastructure challenges – insufficient fast chargers and range anxiety still deter many buyers.
High prices and affordability issues – EVs can still cost more upfront than comparable ICE cars.
Market saturation among early adopters – initial enthusiastic buyers have already purchased EVs, so the next wave of consumers are more price-sensitive.
Shift toward hybrids – some buyers prefer hybrid or plug-in hybrid vehicles as a compromise between ICE and full EVs.

Summary:

Are Electric Cars Losing Popularity?

No — electric cars are not losing popularity overall, but growth rates have slowed or plateaued in some major markets, and preferences in certain regions are shifting toward hybrids or conventional vehicles due to economics, incentives, and infrastructure concerns.