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Sales are projected to exceed 17 million worldwide in 2024, pushing the share of electric vehicles in the global automotive market above 20% for the first time, according to previous forecasts by the International Energy Agency (IEA). And in the first three months of 2025, electric car sales increased by 35% compared to the previous year. Despite significant uncertainties, the market share of electric cars is on track to exceed 40% by 2030 as they become more widely available in more markets, a new report from the International Energy Agency (IEA) shows. After another year of strong growth, global electric car sales are on track to exceed 20 million by 2025, accounting for more than a quarter of all cars sold worldwide, according to the new edition of the IEAs annual Global EV Outlook report . The report, published Wednesday (May 14), shows that despite recent economic headwinds that have pressured the automotive sector, global electric car sales have continued to break records as electric models become increasingly affordable. Sales are expected to exceed 17 million worldwide in 2024, bringing the share of electric vehicles in the global car market above 20% for the first time, according to the IEAs previous forecast. And in the first three months of 2025, electric car sales increased by 35% year-over-year. All major markets, and many others, recorded new sales records in the first quarter. China maintains its position as the leader in the electric vehicle market, with electric cars expected to account for nearly half of all car sales by 2024. The number of electric cars sold in China last year (more than 11 million) is equivalent to the total sold worldwide in 2022. Emerging markets in Asia and Latin America have also emerged as new growth hotspots, with total electric car sales in these regions expected to grow by more than 60% by 2024. In the United States, electric car sales grew by around 10% year-over-year, accounting for more than one in ten cars sold. In Europe, sales stagnated as subsidy programs and other support policies declined, although the electric car market share remained at around 20%. Uncertainties about global economic growth and the evolution of trade and industrial policies could affect the outlook. However, electric vehicle sales are holding up thanks to their increasing affordability, the report notes. In China, two-thirds of all electric cars sold last year were priced lower than their conventional counterparts, even without purchase incentives. However, the purchase price gap compared to conventional cars persisted in many other markets. The average price of a battery-electric car in Germany, for example, remained 20% higher than its conventional counterpart. In the United States, battery-electric cars were still 30% more expensive. Electric vehicles remain consistently cheaper to run in many markets, based on current energy market prices. Even if the oil price were to fall to $40 per barrel, running an electric car in Europe using home charging would still cost about half as much as running a conventional car at current home electricity prices. According to the report, nearly a fifth of global electric car sales are imported vehicles. China, which accounts for more than 70% of global production, shipped nearly 1.25 million electric cars to other countries in 2024. This included many emerging economies, where electric car prices have dropped significantly due to Chinese imports. |
