Just a few years ago, electric vehicles were mostly discussed in the context of climate policy, environmental goals, and government subsidies. Today, the conversation has changed. EVs are now a story about industry, technology, and global competition. The IEA Global EV Outlook 2026 makes it clear that the world is witnessing something much bigger than a shift from gasoline engines to batteries. China has not simply become the world’s largest EV market. It is steadily becoming the center of a new global automotive system.
In 2025, global electric vehicle sales surpassed 20 million units. One out of every four new cars sold worldwide was electric. Chinese manufacturers accounted for roughly 60% of those sales, while EVs captured nearly 55% of all new car sales within China itself. In other words, the world’s largest car market has already moved beyond the point where the internal combustion engine is the default choice.
The bigger story, however, is happening on the production side. China accounted for nearly 75% of global EV manufacturing in 2025. Of the almost 22 million electric vehicles produced worldwide, the vast majority came from Chinese factories. At the same time, China strengthened its position across the entire supply chain. More than 80% of global battery cell production is located in China, and its share in battery materials is even higher. While many countries were debating the transition to electric mobility, China was building an ecosystem where batteries, components, software, and vehicle manufacturing could grow together. That ecosystem has become its strongest competitive advantage.
The impact is already visible in global trade. Chinese EV exports exceeded 2.5 million vehicles in 2025, reaching a new record. More than half of all EV sales outside Europe and the United States were supplied by Chinese manufacturers. Just five years ago, that share was below 5%. Chinese automakers have transformed from domestic players into global exporters in an exceptionally short period of time. And they are exporting far more than vehicles. They are exporting supply chains, technologies, and industry standards.
China’s influence is growing especially fast across emerging markets. Southeast Asia offers one of the clearest examples. In 2025, EV sales in the region more than doubled and approached 20% of all new vehicle sales. EVs accounted for nearly 40% of new car sales in Vietnam, close to 25% in Thailand, and more than 15% in Indonesia. In almost every case, rapid growth has gone hand in hand with the expansion of Chinese brands. Chinese manufacturers now control roughly three-quarters of Thailand’s EV market. In Indonesia, a large share of sales comes either from Chinese imports or from Chinese-owned production facilities operating locally. Even where governments are trying to build domestic industries, Chinese technology and supply networks remain the main drivers of growth.
Price has been one of China’s most powerful advantages. According to the IEA, around 70% of battery electric vehicles sold in China in 2025 were already cheaper than the average conventional car. That marks a major turning point for the industry. For years, high upfront costs were the biggest obstacle to mass EV adoption. In the world’s largest car market, that obstacle is disappearing. In several segments, electric vehicles are beginning to replace conventional cars not because of subsidies or environmental regulations, but because they simply make more economic sense for consumers.
Europe remains the second major growth center, but it is following a different path. EV sales in Europe rose by more than 30% in 2025, lifting market share to 28%. Much of that growth was driven by stricter CO₂ regulations and tougher emissions standards. Automakers were forced to expand their EV lineups and adjust pricing strategies. In other words, regulation is pushing the European market forward, while China is increasingly competing through scale, lower production costs, and affordable vehicles.
The United States tells a different story. After parts of the government’s support framework were removed, EV market growth slowed sharply. Sales in the fourth quarter of 2025 fell by 45% compared with the same period a year earlier. The decline highlighted a simple reality: pricing and manufacturing scale still matter. In markets that have not yet reached China’s level of maturity, policy support continues to play a critical role in sustaining demand.
The transformation is also visible in commercial transport. Global sales of electric trucks more than doubled in 2025, reaching 9% of total truck sales. Once again, China was the main driver. One out of every four trucks sold in the country was electric. Even more striking, nearly one-third of China’s electric truck market is now controlled by companies that never produced diesel trucks at all. Electrification is creating room for new players and reshaping the structure of the industry itself.
The most important conclusion from the report is that today’s competition is no longer between gasoline and electric vehicles. The real competition is between industrial ecosystems. In the twentieth century, leadership was built on engines, mechanical engineering, and manufacturing quality. In the twenty-first century, it is increasingly built on batteries, software, artificial intelligence, and control over supply chains. That is why the most important story in the EV market today is not how many vehicles have been sold. The real story is how China used the transition to electric mobility to strengthen its position across the entire global automotive industry. While many countries are still trying to adapt to this shift, China is increasingly shaping the rules of the industry that will define the future.
Lina Yegil kizi, expert of the EconomyKZ.org portal
