Electric vehicle (EV) market share is expected to surpass 40% by 2030, with global sales projected to exceed 20 million by 2025, capturing over a quarter of the car market, according to the International Energy Agency (IEA).
Despite economic challenges, the EV sector continues to experience record growth, with affordability driving increased adoption.
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The IEA’s annual Global EV Outlook indicates that electric cars are becoming more affordable, leading to robust sales growth despite economic pressures on the automotive sector.
In 2024, global sales of electric vehicles exceeded 17 million, with EVs accounting for more than 20% of the global car market for the first time.
The first quarter of 2025 saw a 35% year-on-year increase in electric car sales.
China remains the leader in the EV market, with electric cars making up almost half of all car sales in 2024.
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By GlobalDataAdditionally, emerging markets in Asia and Latin America have seen a surge in electric car sales, increasing by over 60% in 2024.
In the US, electric car sales grew by approximately 10% year-on-year, reaching more than one in ten cars sold.
Europe’s sales stagnated due to diminishing subsidies and supportive policies, yet the market share of electric cars stayed around 20%.
Globally, the average price of a battery electric car decreased in 2024 amid competitive pressures and falling battery costs.
In China, two-thirds of electric cars sold were priced below their conventional counterparts, even without purchase incentives.
Furthermore, EVs have maintained lower operational costs across many markets, with home charging in Europe remaining about half as expensive as running a conventional car, even with potential oil price drops.
The IEA report highlights that nearly one-fifth of electric car sales worldwide consist of imported vehicles.
China, responsible for over 70% of global production, exported nearly 1.25 million electric cars in 2024, including to emerging economies where prices dropped significantly due to Chinese imports.
The report also focuses on electric trucks, noting an 80% increase in sales last year, accounting for nearly 2% of all truck sales globally.
IEA executive director Fatih Birol said: “Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally. Sales continue to set new records, with major implications for the international auto industry. This year, we expect more than one in four cars sold worldwide to be electric, with growth accelerating in many emerging economies. By the end of this decade, it is set to be more than two in five cars as EVs become increasingly affordable.”
