Electric vehicles (EVs) are continuing their rapid ascent in the global automotive market, with more than one in four cars sold in 2025 projected to be electric, according to the International Energy Agency’s (IEA) newly released Global EV Outlook. The report highlights a dramatic shift in the auto sector as electric cars become increasingly accessible, particularly in emerging markets.
EV Sales Breaking Records Worldwide
Global EV sales are expected to exceed 20 million units this year, a leap from over 17 million in 2024. This milestone marks the first time EVs are projected to surpass a 25% share of global car sales. The first quarter of 2025 alone saw electric vehicle sales surge by 35% compared to the same period last year, with new benchmarks reached across all major markets.
China continues to lead the global charge, with EVs making up nearly half of all car sales in the country in 2024. The 11 million EVs sold in China last year match the total number of EVs sold globally in 2022. Growth was also strong in developing regions, with sales in Asia and Latin America climbing over 60% year-on-year.
The United States saw more modest progress, with EVs accounting for just over 10% of total car sales in 2024—a 10% increase from the previous year. Europe, meanwhile, witnessed a stagnation in EV uptake due to waning government incentives, though EVs still maintained a 20% market share.
Affordability Drives Growth Amid Uncertainty
IEA Executive Director Fatih Birol emphasized the sector’s resilience: “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.”
A key driver behind this expansion is the falling cost of EVs. The average price of a battery electric car declined globally in 2024, largely thanks to increased competition and reduced battery costs. In China, two-thirds of all EVs sold were cheaper than their petrol or diesel counterparts—even without subsidies. However, price disparities remain elsewhere: in Germany, EVs were still around 20% more expensive, and in the U.S., the gap stood at about 30%.
Still, EVs offer substantial operational savings. Even with oil prices as low as $40 per barrel, charging an EV at home in Europe remains roughly half as expensive as fueling a conventional vehicle.
Electric vehicles (EVs) are continuing their rapid ascent in the global automotive market, with more than one in four cars sold in 2025 projected to be electric, according to the International Energy Agency’s (IEA) newly released Global EV Outlook. The report highlights a dramatic shift in the auto sector as electric cars become increasingly accessible, particularly in emerging markets.
EV Sales Breaking Records Worldwide
Global EV sales are expected to exceed 20 million units this year, a leap from over 17 million in 2024. This milestone marks the first time EVs are projected to surpass a 25% share of global car sales. The first quarter of 2025 alone saw electric vehicle sales surge by 35% compared to the same period last year, with new benchmarks reached across all major markets.
China continues to lead the global charge, with EVs making up nearly half of all car sales in the country in 2024. The 11 million EVs sold in China last year match the total number of EVs sold globally in 2022. Growth was also strong in developing regions, with sales in Asia and Latin America climbing over 60% year-on-year.
The United States saw more modest progress, with EVs accounting for just over 10% of total car sales in 2024—a 10% increase from the previous year. Europe, meanwhile, witnessed a stagnation in EV uptake due to waning government incentives, though EVs still maintained a 20% market share.
Affordability Drives Growth Amid Uncertainty
IEA Executive Director Fatih Birol emphasized the sector’s resilience: “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.”
A key driver behind this expansion is the falling cost of EVs. The average price of a battery electric car declined globally in 2024, largely thanks to increased competition and reduced battery costs. In China, two-thirds of all EVs sold were cheaper than their petrol or diesel counterparts—even without subsidies. However, price disparities remain elsewhere: in Germany, EVs were still around 20% more expensive, and in the U.S., the gap stood at about 30%.
Still, EVs offer substantial operational savings. Even with oil prices as low as $40 per barrel, charging an EV at home in Europe remains roughly half as expensive as fueling a conventional vehicle.
China Leads in EV Exports and Electric Trucks
China’s dominance in EV production is also extending to exports. In 2024, the country exported approximately 1.25 million EVs, with many headed to emerging economies where they helped lower retail prices and expanded access.
The IEA report also highlights booming electric truck sales, which rose 80% in 2024 and now account for nearly 2% of all truck sales globally. This growth, led by China, is attributed to the cost-efficiency of electric trucks, whose lower operating expenses can offset their higher purchase costs—especially for heavy-duty models.
Looking Ahead: EV Industry Insights and Tools
To complement the findings, the IEA has updated its Global EV Data Explorer and Global EV Policy Explorer, enabling stakeholders to explore trends, forecasts, and policy developments. A special report is also in the pipeline for this summer, focusing on strategies to ensure supply chain resilience and competitiveness as the automotive sector continues its transition to electrification.
China’s dominance in EV production is also extending to exports. In 2024, the country exported approximately 1.25 million EVs, with many headed to emerging economies where they helped lower retail prices and expanded access.
The IEA report also highlights booming electric truck sales, which rose 80% in 2024 and now account for nearly 2% of all truck sales globally. This growth, led by China, is attributed to the cost-efficiency of electric trucks, whose lower operating expenses can offset their higher purchase costs—especially for heavy-duty models.
Looking Ahead: EV Industry Insights and Tools
To complement the findings, the IEA has updated its Global EV Data Explorer and Global EV Policy Explorer, enabling stakeholders to explore trends, forecasts, and policy developments. A special report is also in the pipeline for this summer, focusing on strategies to ensure supply chain resilience and competitiveness as the automotive sector continues its transition to electrification.
