Electric vehicles (EV) are on course to exceed 40% of total market share by 2030, according to a new International Energy Agency (IEA) report.
The agency’s Global EV Outlook study revealed “robust growth” for EVs, which are on track to surpass 20 million in 2025.
It said that despite recent economic headwinds putting pressure on the automotive sector, EVs “continued to break records” – and become more affordable.
Sales exceeded 17 million globally in 2024, putting EVs’ share of the global car market above 20% for the first time. In the first three months of 2025, electric car sales were up 35% year-on-year.
All major markets, and many others, saw new records for first-quarter sales.
China maintains its position as the EV market leader, with electric cars accounting for almost half of all car sales in 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 become new centres of growth, with total electric car sales across these regions surging by more than 60% in 2024.
In the United States, electric car sales grew by about 10% year-on-year, reaching more than one in ten cars sold. Europe saw sales stagnate as subsidy schemes and other supportive policies waned, though the market share of electric cars remained around 20%.
On a global level, the average price of a battery electric car fell in 2024 amid growing competition and declining battery costs.
In China, two-thirds of all electric cars sold last year were priced lower than their conventional equivalents, even without purchase incentives. But the purchase price gap with conventional cars persisted in many other markets. The average battery electric car price in Germany, for example, remained 20% higher than that of its conventional counterpart. In the United States, battery electric cars were still 30% more expensive.
According to the report, almost one-fifth of electric car sales worldwide are of imported vehicles. China shipped nearly 1.25 million electric cars to other countries in 2024.
The report also includes a special focus on electric trucks and their ownership costs. It finds that globally, electric truck sales increased by around 80% last year, accounting for close to 2% of all truck sales worldwide. This growth, driven by a doubling of sales in China, was supported by the cost-competitiveness of some heavy-duty electric trucks in China compared with their diesel equivalents.
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.”
Dominic Phinn, Head of Transport at Climate Group, said about the report:
“Policymakers are running out of excuses not to be bolder. In ever more diverse markets, EV sales are surging, prices are dropping.
Now is the time to create the conditions for this transition to really accelerate. Boost your charging infrastructure. Ensure the electricity grid is ready. Make sure automakers are set on a clear path to full electrification. Help consumers in their choices. And support companies with vehicle fleets – they’re the ones who are currently leading this shift in markets around the world.
The direction of travel is clear: road transport will be cleaner, healthier, and smarter. The winners are those who’ll get there first.”
Image from Shutterstock
