In September, the global electric vehicle market witnessed explosive growth. According to a report by electric vehicle research institute Rho Motion, global monthly sales of electric vehicles exceeded 2 million for the first time this month, setting a new historical record. Behind this surge in electric vehicles, Chinese battery companies are rapidly dominating the global energy storage battery market.

▍Global Market Growth Across Multiple Regions

Data shows that in September, global sales of electric vehicles reached 2.1 million units, up 20% month-on-month and 24% year-on-year. Charles Lester, Data Manager at Rho Motion, analyzed that this growth was primarily driven by a combination of policy support and consumer demand in markets such as the US, UK, and South Korea. As of September, electric vehicle sales for the year have reached 14.7 million units, up 26%.

China continues to dominate the global electric vehicle market. Data from the China Association of Automobile Manufacturers shows that in September, sales of new energy vehicles reached 1.604 million units, up 24.6% year-on-year, accounting for 49.7% of total new car sales, a significant increase from the same period last year. Cumulative sales in the first three quarters of 2025 reached 11.228 million units, up 34.9% year-on-year, further solidifying its position as the world's largest and most mature electric vehicle market.

The European market performed strongly in September, with electric vehicle sales reaching 427,000 units, up 55% month-on-month and 36% year-on-year. Cumulative sales from January to September were approximately 3 million units, up 32% year-on-year. Specifically, the UK saw record-high electric vehicle sales, driven by strong seasonal demand for new license plates and the introduction of electric vehicle subsidies in July. Sales of pure electric vehicles rose by about 30% year-on-year, while plug-in hybrid vehicle sales increased by nearly 60%.

The German government recently approved a €3 billion electric vehicle subsidy program aimed at reviving market demand and supporting the domestic automotive industry, with expectations of boosting demand again next year. With subsidy policy support, Italy and Spain achieved year-on-year growth of approximately 66% and over 100%, respectively. Norway's electric vehicle market share reached an astonishing 98.9%, with pure electric vehicles accounting for 98.3% of sales, setting a new historical record and nearly achieving full electrification.

The US market saw a surge in electric vehicle purchases in September due to the impending expiration of federal tax credits, with sales up 66% year-on-year. Cumulative sales for the year were approximately 1.5 million units, up 11% year-on-year. Several automakers delivered strong third-quarter results: Ford sold 30,612 pure electric vehicles, up 86% from the second quarter; General Motors sold 66,501 pure electric vehicles, up 44% from the second quarter; Hyundai's Ioniq 5 saw third-quarter sales more than double those of the second quarter; Tesla, the market leader, expects to deliver 185,000 vehicles, up 27% from the second quarter.

However, with the end of federal incentives, electric vehicle sales in the US are expected to decline significantly in the fourth quarter. Several automakers have begun taking short-term measures to mitigate the impact, such as Hyundai implementing price cuts to maintain competitiveness. Additionally, some automakers have adjusted their production plans, with General Motors, Volkswagen, and Mercedes-Benz announcing production cuts or suspensions of certain electric vehicle models.

Cumulative electric vehicle sales in other regions of the world reached 1.2 million units for the year, up 48% year-on-year.

▍Intensifying Competition in the Battery Market

With the explosive growth of the electric vehicle market, the related battery energy storage system (BESS) market has also entered a period of rapid growth. In the first half of 2025, global BESS battery shipments exceeded 17% of the total for the entire year of 2023.

Notably, all ten of the world's top energy storage battery suppliers in the first half of 2025 were from China. This stands in stark contrast to 2023, when South Korean companies (Samsung SDI and LG Energy Solution) were still among the top players, reflecting China's comprehensive lead in lithium iron phosphate technology and cost control.

However, despite the overall market expansion, the competitive landscape has become increasingly fragmented. In 2023, the top three suppliers accounted for 58% of the market share, which dropped to 53% in 2024 and further declined to 46% in the first half of 2025.

As the world's largest battery supplier, CATL remains in first place with a 22% market share, but its lead is gradually narrowing. Meanwhile, companies like AVIC Lithium have seen their market share jump thanks to major orders from the Middle East, while BYD, although falling out of the global top five in the first half, is expected to rebound strongly with its Chile project in the second half.

The global electric vehicle market has now entered a new phase driven by both policy and market forces. In the short term, changes in subsidy policies will continue to cause market fluctuations, but the long-term trend toward electrification is irreversible. Meanwhile, Chinese battery companies not only dominate the domestic market but have also established structural advantages in the global energy storage supply chain. As competition intensifies, the battery and energy storage market is shifting from 'dominance by market leaders' to 'diversified competition,' providing a window of opportunity for more Chinese companies to expand overseas.

Layout 丨 Zheng Li

Source 丨 Rho Motion

Image Source 丨 Qianku Network