The global electric vehicle (EV) market is poised for continued robust growth, with sales expected to surpass 20 million in 2025 and account for over a quarter of all cars sold worldwide, according to the International Energy Agency’s (IEA) latest Global EV Outlook report. Released today, the report indicates that despite recent economic challenges affecting the automotive sector, EV sales have continued to break records as electric models become increasingly affordable across various markets.
In 2024, global EV sales exceeded 17 million, pushing their market share above 20% for the first time, as previously forecasted by the IEA. The first quarter of 2025 saw a 35% year-on-year increase in electric car sales, with all major markets and many others achieving new records for first-quarter sales.
China remains the leading EV market, with electric cars accounting for nearly half of all car sales in 2024. The country sold over 11 million electric cars last year, a number equivalent to global sales in 2022. Emerging markets in Asia and Latin America have also emerged as new growth centers, with total electric car sales in these regions surging by over 60% in 2024. In the United States, EV sales grew by about 10% year-on-year, reaching over one in ten cars sold. While Europe’s sales stagnated as subsidy schemes waned, the market share of electric cars remained around 20%.
“Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” said 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.”
The report highlights that the average price of battery electric cars fell globally in 2024 due to increased competition and declining battery costs. In China, two-thirds of all electric cars sold were priced lower than their conventional counterparts, even without incentives. However, in markets like Germany and the United States, EVs remained 20% and 30% more expensive than conventional cars, respectively. Despite this, EVs remain cheaper to operate across many markets, with the cost of running an electric car in Europe via home charging being about half that of a conventional car, even if oil prices were to drop to $40 per barrel.
The report also notes that almost one-fifth of global electric car sales are of imported vehicles, with China accounting for over 70% of global production and shipping nearly 1.25 million electric cars to other countries in 2024. This has contributed to lower prices in emerging economies.
A special focus on electric trucks reveals that their sales increased by around 80% last year, accounting for nearly 2% of all truck sales worldwide. This growth was driven by a doubling of sales in China, where some heavy-duty electric trucks are now cost-competitive with their diesel equivalents due to lower operating costs.
The new Global EV Outlook is accompanied by updated online tools, including the Global EV Data Explorer and the Global EV Policy Explorer, which allow users to explore EV statistics, projections, and policy measures worldwide. The IEA is also preparing a special report on the future of the global car industry as EV adoption accelerates, to be published this summer.
