Electric vehicle (EV) sales are projected to exceed 20 million units in 2025, representing over a quarter of global car sales, according to the International Energy Agency’s (IEA) latest Global EV Outlook report released on May 14, 2025. The report indicates that the market share of electric cars is on track to surpass 40% by 2030, driven by increasing affordability across various regions.
Despite facing economic uncertainties that have impacted the automotive sector, electric car sales have continued to achieve new milestones. In 2024, global EV sales reached over 17 million, marking the first time EVs accounted for more than 20% of all car sales worldwide. The first quarter of 2025 saw a 35% year-on-year increase in electric car sales, with major markets setting new records for quarterly sales.
China remains the dominant player in the EV market, with electric vehicles making up nearly half of all car sales in 2024. The country sold over 11 million electric cars last year, a figure that matches the total global sales in 2022. Additionally, emerging markets in Asia and Latin America have experienced significant growth, with EV sales in these regions increasing by more than 60% in 2024.
In the United States, electric car sales grew by approximately 10% year-on-year, accounting for more than one in ten cars sold. Conversely, the European market saw a stabilization in sales as subsidy programs and supportive policies decreased, although the market share of electric vehicles remained steady at around 20%.
“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,” said IEA Executive Director Fatih Birol. “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.”
The report also highlights that the average price of battery electric cars declined in 2024 due to increased competition and lower battery costs. In China, two-thirds of electric cars sold were priced below their conventional counterparts without purchase incentives. However, price gaps persist in other markets, with battery electric cars in Germany remaining 20% more expensive and in the United States 30% more expensive than traditional vehicles.
Operational costs for EVs remain lower across many markets. For example, even if oil prices drop to $40 per barrel, charging an electric vehicle at home in Europe would still cost approximately half as much as operating a conventional car at current electricity prices.
The IEA report also notes a significant rise in electric truck sales, which increased by around 80% in 2024, now accounting for nearly 2% of all truck sales worldwide. This growth is largely driven by the cost-competitiveness of electric trucks in China.
Source: IEA
