More than one in four cars sold globally in 2025 will be electric as falling prices, strong demand, and surging growth in emerging markets push electric vehicle sales to new highs, the International Energy Agency said on Wednesday.
Global EV sales are forecast to exceed 20 million units this year, up from 17 million in 2024, when electric cars captured more than 20 percent of the global market for the first time, according to the IEA’s latest annual Global EV Outlook report. Sales in the first quarter of 2025 were up 35 percent from the same period a year earlier.
“Sales continue to set new records, with major implications for the international auto industry,” IEA Executive Director Fatih Birol said in a statement. “This year, we expect more than one in four cars sold worldwide to be electric, with growth accelerating in many emerging economies.”
China Leads, Emerging Markets Surge
China remained the dominant EV market in 2024, with ECs making up nearly half of all vehicles sold.
The country sold more than 11 million ECs last year — roughly equivalent to the global total in 2022 — and accounted for more than 70 percent of global EV production.
The report highlighted significant momentum in emerging markets, where total EV sales across Asia and Latin America surged by over 60 percent in 2024.
In contrast, growth slowed in developed markets such as Europe and the United States.
In the US, EC sales grew by 10 percent year-on-year, reaching more than one in ten new cars sold.
Meanwhile, sales in Europe plateaued as subsidies and other government incentives were scaled back, though EVs maintained a 20 percent market share.
Price Gaps Narrow, But Persist
EV affordability continued to improve globally in 2024, with average prices for battery electric vehicles declining amid falling costs and intensified competition.
In China, two-thirds of ECs sold were cheaper than internal combustion engine vehicles, even without government incentives.
However, price differences remain pronounced in other markets. In Germany, BEVs cost around 20 percent more than their ICE counterparts, while in the US, the gap was closer to 30 percent.
Despite higher upfront costs in many countries, EVs are typically cheaper to run. The report noted that, even with oil prices dropping to $40 per barrel, operating an EV in Europe via home charging would cost about half as much as fueling a gasoline car.
Exports and Trucks Drive Broader Market
Nearly one-fifth of electric cars sold globally in 2024 were imported, with China exporting approximately 1.25 million EVs — many of them to emerging economies where prices dropped significantly due to the influx of Chinese-made vehicles.
The report also noted strong growth in the electric truck segment, with global sales rising by around 80 percent last year to make up nearly 2 percent of total truck sales.
Much of that growth was driven by China, where lower operating costs made some electric heavy-duty trucks cost-competitive with diesel alternatives.
Looking ahead, the IEA expects EVs to account for over 40 percent of global car sales by 2030. However, the agency warned that the outlook could be affected by broader economic trends and trade policy shifts.
