The year of the EV: What 2025 holds for electric vehicles and emobility

Describing 2025 as the "year of the EV" might feel superfluous for industry veterans like Virta, who have been shaping the future of electrification for over a decade.

Yet, there's no denying that something transformative is happening in the industry.

Analysts predict that 2025 will be a pivotal year for EVs, with electrified vehicles potentially comprising up to 25% of new vehicle purchases (in comparison to the predicted 20% in 2024) - a huge milestone. 

But what factors are shaping the industry? 

Will Jaguar’s new Type 00 model inspire younger, affluent EV buyers? How will UK startup Nyobolt help superpower battery tech? And what does it mean for China to outsell internal combustion engines with EVs for the first time? 

Here’s a quick glimpse of the topics: 

• Global: China outsells ICE vehicles with EVs for the first time
• Tech: Ultra-fast battery charging redefine expectations
• Economy: EVs in the UK are becoming more accessible than ever
• Culture: Jaguar electrifies its brand appeal for a new generation
• Policy: Governments worldwide ramp up pro-electric incentives

Global: China's electric revolution 

If you had to name one country as the ultimate EV advocate, it would be an easy decision as of late-2024. 

In 2025, for the first time in history, China predicts that EV sales will outstrip internal combustion engine (ICE) vehicles; a monumental milestone in the automotive world. 

Predictions from BloombergNEF forecast that 65% of all EVs sold globally will be in China.

Leading the charge is BYD, one of China's premier automakers, which shattered records last year by delivering 4.27 million EVs and plug-in hybrids. This remarkable achievement solidifies BYD’s position as a trailblazer in the global shift to vehicle electrification.

What's superpowered their success?

China’s government has been staunch advocates for electrification resulting in strategic policy support throughout the supply chain. Their huge domestic market and the sheer speed of their technological advancements, such as their dominance in battery manufacturing from companies like CATL, have also played a part in the success. 

Former Nissan and Aston Martin executive Andy Palmer, often referred to as the “Godfather of EVs,” recently highlighted the strength of the Chinese market in an interview with Business Insider.

"The Chinese cars are bloody good. The Chinese vehicles offer remarkable value for money for what they deliver," Palmer remarked.

"Their battery technology's class-leading, and they've concentrated very much on their software".

For other countries transitioning, there’s lots to take note of, learn from and adapt for their own markets. 

But while China’s domestic view may look rosy, there’s no ignoring that cross-geopolitical tensions have halted their international success. Bloomberg comments that this will likely lead to “even more pressure on Chinese carmakers” to please their domestic customers with innovative new tech.

Tech: Batteries get ultra-quick

"If everything seems under control, you're not going fast enough." Legendary race car driver, Mario Andretti, knew a few things about propelling success through speed. Can the battery industry take note?

Well it already has. 

We’ve seen huge improvements in the last decade for battery charge time. Currently, EV drivers can now expect on average charging to take anywhere from 20 minutes to a couple of hours to charge a battery from empty. 

While charge length can vary because of car model and environment, the primary variable is charger type. Chargers are typically categorised in three ways; AC, DC and ultra-fast.

How fast can chargers get? 

As mentioned above, the Chinese market boosts several battery manufacturing companies working to develop faster chargers. Chinese battery giant CATL introduced its Shenxing Plus battery in April, which reportedly provides 600 kilometres of range after just 10 minutes of charging. 

In August, Chinese startup Zeekr unveiled new batteries for its 007 sedan, claiming they were the fastest-charging batteries in the world, able to reach 80% charge from 10% in just over 10 minutes.

But there’s lots of progress happening in the UK too. 

Battery start-up Nyobolt showcased their EV prototype in June, 2024, where its battery charged to 80% in just 4 minutes and 37 seconds, providing a range of around 120 miles.  

By comparison, in 2024, an existing Tesla supercharger can charge a car battery to 80% in 15-20 minutes.

In an article with Cambridge, Nybolt’s director of vehicle battery systems, Shane Davies, says,

“Nyobolt is removing the obstacle of slow and inconvenient charging”

And that’s the true point of faster charging - it’s all about improving the charging experience for EV drivers across the globe. But it’s not just about the battery itself, we need the supporting infrastructure. 

Lecturer in chemical engineering at Strathclyde University, Dr Edward Brightman, states in a recent BBC article,

"We urgently need to upgrade the grid and deploy rapid chargers with the capability to deliver the charge to the battery."

That’s exactly Virta’s mission - to support business with efficient and reliable EV infrastructure, ensuring a seamless mobility ecosystem.

Economy: The UK EV market becomes more affordable

Affordability has been a hot topic in the EV industry over the last decade. In fact, it’s been one of the major roadblocks to adoption. 

Research conducted by the Green Finance Institute (GFI) in 2023 found that 27% of UK drivers who said they would not buy an EV, named cost as a major factor.

There are certainly expensive EV models on the market, from Jaguar’s Type 00 series set to start at £100k to what’s considered one of the most expensive EVs in the world, The Aspark Owl, with prices starting from $4 million. 

But times are changing. 

Declining battery costs, government incentives and manufacturing maturity, has meant that in 2025 the affordable EV market has truly landed. 

10 cheapest EV models in the UK market

  Data source: EV Database

Equally, the second-hand EV market is growing rapidly, with record sales but steep price drops. 

Manufacturers' pricing strategies and increased EV options are driving market changes, with stabilisation expected as infrastructure and technology improve.

Culture: Has Jaguar made electric cooler? 

You probably don’t need us to tell you that in mid-November 2024, Jaguar launched their new brand identity - it took the form of a huge-grilled, long-bonetted, Miami pink, all-electric Type 00 car.

Bold? Yes. Risky? Also, yes. 

Their transition from sophisticated classic to edgy fresh is a loud creative decision. But the payoff could be huge, as they try to attract younger buyers in a competitive automotive market. 

The announcement made global news, with their 30-second announcement video racking up 3.6 million views and 44k comments, consumer curiosity clearly took hold. 

Journalist James Morris comments, "I can't remember any automaking launch or rebrand getting this much attention in all my years writing about the car industry."

Of course, the discourse has been a mixture of both positive and negative reactions - something not totally unexpected from Jaguar. 

Gerry McGovern, Jaguar’s chief creative officer said himself that the change will “make people feel uncomfortable, and it will polarise”. 

Will it be a commercial success? 

For the EV industry, this sparked an interesting conversation. EVs can be convenient, technologically-impressive, affordable, and suddenly for a new target market, they can also be cool. 

And in an economy where aesthetics have become even more important, never underestimate the commercial power of what culture decides as cool.

Manfredi Ricca, global chief strategy officer at brand consultancy Interbrand says,

“Museums can live on the past alone; commercial businesses can’t – they must turn whatever heritage they have into something that a sufficient number of customers can be willing to pay enough for.”

This is largely what propelled Jaguar Land Rover into action. In 2023 the company was facing some tough sales metrics, with their Jaguar model portfolio only selling 64,241 units, out of their total of 431,733. 

In essence, their creative transition was born out of a commercial need. 

The fact that the model is electric isn’t a surprise, the business is intending on longevity and electric will only become more popular in the future. However, the type 00 won’t be their first EV, we expect the new eclectic Range Rover to launch in early 2025. 

Policy: Pro-electric incentives around the globe

In 2025, several significant policy changes are anticipated to impact the electric vehicle (EV) landscape:

United Kingdom

• Vehicle Excise Duty (VED) increases: Effective April 2025, the UK will implement substantial VED hikes for new petrol, diesel, and hybrid vehicles. Diesel buyers may face an average increase of £1,114, petrol buyers £503, and hybrid owners between £135 and £327, depending on the model. These adjustments aim to encourage the adoption of zero-emission and electric cars.

United States

• Federal EV tax credit changes: As of early 2025, a $7,500 federal tax credit remains available for qualifying EVs. However, the incoming administration has expressed intentions to reduce or eliminate these incentives. State-level programs, such as California’s $7,500 credit, may continue to support EV purchases if federal incentives are reduced.

China

• Export restrictions on battery technologies: China has proposed additional export restrictions on technologies used in battery components and critical minerals processing, such as lithium and gallium. These measures could affect global EV supply chains and the international expansion of Chinese battery manufacturers.

Europe

• Mandatory charging points: To facilitate the use of electric cars across the EU, regulations effective from 2025 mandate the installation of recharging points every 60 km along major transport routes. This development is expected to alleviate range anxiety and make long-distance travel more convenient for EV owners.

These policy changes and market developments indicate a concerted effort across the globe to advance EV adoption, enhance infrastructure, and meet environmental targets, while also navigating the challenges posed by increased global competition.

Virta is also contributing to these efforts by supporting businesses with their charging infrastructure. Read about how we've supported Berlin's largest airport with their charging mission here.