Global EV Adoption Is a Regional Story: Why 75% of New Cars Worldwide Are Still ICE
- Paul Bennett
- Feb 13
- 4 min read
From a European perspective, it can appear that China primarily manufactures electric vehicles and exports them extensively to the rest of the world.
The reality is more nuanced.
China is the world’s largest automotive producer, and a very large share of what it builds and exports is still powered by internal combustion engines (ICE).
Electrification is accelerating. However, it remains globally concentrated.
Demystifying China’s Car Production
In 2025, China’s total vehicle production reached approximately 34.4 million units, marking its 17th consecutive year as the world’s largest automotive producer.
Passenger vehicle sales alone exceeded 30 million units for the first time.
Electrification is significant, but not yet dominant.
New Energy Vehicles (NEVs - BEVs, PHEVs and certain hybrids) accounted for roughly 16 million units, or around 48% of new vehicle sales.
That means:
Just over half of the new vehicles sold in China are still pure ICE
Only around one in ten cars currently on Chinese roads is a NEV
China is electrifying faster than any other major market.
However, it is still producing millions of combustion-powered vehicles every year.
China’s Export Footprint: A Mixed Powertrain Story
In 2025, China exported approximately 7.1 million vehicles.
Approximately one in five vehicles built in China was exported.
Of those exports:
Around 40–45% were NEVs
Around 40–45% were petrol ICE vehicles
The remainder were conventional hybrids
Export destinations included:
🇲🇽 Mexico
🇷🇺 Russia
🇦🇪 UAE
🇪🇺 European Union
🇬🇧 United Kingdom
🇦🇺 Australia
The powertrain mix varies by destination.
Wealthier, policy-driven markets such as the UK and several EU member states import a higher proportion of BEVs and PHEVs.
Price-sensitive markets - and those with limited charging infrastructure - continue to import large volumes of petrol vehicles.
Even from the most advanced EV manufacturing base on earth, more than half of the cars produced are still ICE.
Because much of the world still demands them.
Europe’s EV Transition in Global Context
Within the EU, BEVs accounted for approximately 17–18% of new registrations in 2025.
Including plug-in hybrids, plug-in penetration reaches the low-to-mid 20% range, with certain countries significantly higher.
Europe’s electrification push is largely policy-driven:
CO₂ fleet rules
Industrial strategy
Regulatory deadlines
However, Europe accounts for only a portion of global light-vehicle demand.
Globally in 2025:
Plug-in vehicles represented roughly 20–25% of new car sales
BEVs alone accounted for around 15%
And those volumes are heavily concentrated in:
China
Europe
Parts of North America
Select East Asian markets
Outside these regions, EV penetration remains low.
The Rest of the World: Still Dominated by ICE
Regional comparisons tell a stark story:
Latin America: Around 5% plug-in share in 2025
Africa: Well under 1% EV penetration in most markets
South and Southeast Asia: Growth in Thailand and Vietnam, but ICE still dominates overall
In many developing markets:
The charging infrastructure is sparse
Grid reliability is inconsistent
Income levels constrain purchasing power
Used imports dominate the market
Even as EV prices fall, BEVs remain premium products relative to average incomes.
The structural conditions required for rapid electrification simply do not yet exist in many regions.
Why ICE Will Persist for Decades
Even as China ramps up NEV production and Europe tightens emissions regulation, internal combustion vehicles will remain central to global mobility for many years.
The reasons are structural.
1. Policy and Political Will
China and Europe maintain long-term EV strategies.
Many lower-income countries cannot prioritise electrification over more immediate economic and social needs.
2. Infrastructure Constraints
Dense charging networks exist in parts of China, Europe and North America.
In contrast, many African and South Asian regions still face fundamental grid and coverage challenges.
3. Income and Affordability
In numerous markets:
Buyers rely on inexpensive used imports
Informal financing dominates
New BEVs are financially out of reach
In parts of Africa, Latin America and the Indian subcontinent, EV penetration today is near zero.
In some segments, ICE vehicles may remain dominant effectively “in perpetuity”.
Even as electric buses or two- and three-wheelers proliferate in urban centres, the everyday family car will remain an ICE-powered import for many years.
The Visual Reality: EV Share by Continent
The chart referenced in the original article (page 4) illustrates BEV market share by continent in 2025.
It highlights:
High penetration in China and Europe
Moderate uptake in North America
Minimal adoption across much of Africa and parts of Latin America
The global electrification story is therefore highly uneven.
The Demystified Global Picture
When stripped of headlines and assumptions, the global powertrain landscape looks like this:
China builds and exports both NEVs and vast volumes of ICE vehicles.
Europe and a small group of high-income markets are genuine leaders in electrification.
The majority of the world - by population and often by volume - remains ICE-dominated.
Approximately 75% of global passenger-car sales remain internal-combustion.
Electrification is accelerating.
But it is not universal.
Conclusion: Electrification Is Advancing - But Not Everywhere
From a European perspective, the global transition may seem inevitable and rapid.
From a global perspective, it is selective and uneven.
China is electrifying at an extraordinary pace - yet still produces millions of ICE vehicles.
Europe is tightening regulations, yet it accounts for only part of global demand.
The rest of the world remains structurally reliant on combustion engines.
The future is electric in many regions.
But for much of the world, internal combustion remains the present - and will for decades to come.
