Global sales of electric vehicles are set to account for more than 25% of total cars sold during 2025, surpassing 20 million unit sales, according to new data by the International Energy Agency (IEA).
The IEA’s Global EV Outlook 2025 found that the market share of electric vehicles is on course to exceed 40% by 2030, as EVs become increasingly affordable in more markets.
Last year was a record-breaking one for EV sales, as total sales surpassed 17 million, putting EVs above the 20% market share threshold for the first time. This momentum continued into the first quarter of this year, when EV sales grew by 35% year-on-year, with many markets setting first-quarter sales records.
China leads the way
China remains the global leader for EVs, with electric vehicles accounting for close to half of all cars sold last year. Some 11 million EVs were sold in China last year, equivalent to total global EV sales in 2022.
Emerging markets and Latin America have also become new centres of growth, according to the IEA – surging by more than 60% in 2024 – while in the US, sales were up 10% year-on-year. Europe saw the market stagnate somewhat, as subsidy schemes and other support mechanisms promoting EV sales were wound down.
“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,” commented 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.”
Price of electric vehicles
The average price of a typical battery electric vehicle (BEV) fell in 2024, driven by rising competition and lower battery costs, which also had a positive effect on sales in some markets.
In China, two-thirds of EVs were cheaper than their internal combustion engine (ICE) counterparts, even without incentives, however in Germany and the US, BEVs remained 20% and 30% more expensive, respectively, than conventional cars.
However, as the IEA noted, ‘EVs remain consistently cheaper to operate across many markets, based on current energy market prices. Even if oil prices were to fall as low as $40 per barrel, running an electric car in Europe via home charging would still cost about half as much as running a conventional car at today’s residential electricity prices.’ Read more here.
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