Electric vehicle sales continue accelerating, with global numbers expected to exceed 20 million in 2025. This would mean EVs will account for more than a quarter of total car sales this year, according to the International Energy Agency's latest Global EV Outlook report. Despite global economic uncertainties and pressure on the auto industry, EVs are maintaining a strong growth curve.

Historic Highs for EV Market 

In 2024, EV sales broke previous records, surpassing 17 million units globally. This milestone pushed EVs past the 20 per cent share of the overall car market for the first time—right in line with the IEA’s past forecasts. The upward trend continued into the first quarter of 2025, with sales climbing 35 per cent year over year. Major automotive markets and several emerging ones reported record-high Q1 EV sales.

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China Leads in EV Sales

China continues to dominate the electric vehicle landscape, where EVs represented almost half of all cars sold in 2024. The country sold over 11 million electric vehicles last year—equal to the total global EV sales in 2022. Growth is also picking up pace in emerging economies across Asia and Latin America, where EV sales jumped over 60% during the same period.

US. and Europe: Mixed Progress

In the United States, electric vehicle sales grew by approximately 10% year over year, now making up more than 10% of the national car market. Europe, however, saw a slowdown. As subsidies and other policy supports began to decline, EV sales plateaued, although their market share held steady at around 20 per cent.

IEA: Strong Global Momentum 

Fatih Birol, Executive Director, IEA, emphasised that even with economic and policy-related uncertainties, EVs are maintaining a strong global trajectory. “This year, we expect more than one in four cars sold worldwide to be electric,” he said. He added that continued growth, especially in emerging economies, will push the market share past 40% by 2030 as EVs become more affordable.

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Affordability 

Falling battery costs and intense competition have driven global prices for battery electric vehicles down in 2024. In China, about two-thirds of EVs sold were cheaper than comparable combustion-engine vehicles, even without incentives. In Germany, battery electric cars were still 20% more expensive than conventional cars. In the U.S., the gap was around 30 per cent.

EVs Are Inexpensive

Operating costs remain a strong advantage for EVs. Across many markets, electric vehicles are cheaper to run than their petrol or diesel counterparts. For example, even if crude oil prices fell to $40 per barrel, running an EV at home in Europe would still cost half as much as operating a fuel-powered car, based on current electricity rates.

Chinese Exports Affordable EVs 

About 20 per percent of electric vehicles sold globally are imported, with China accounting for over 70 per percent of global EV production. In 2024, China exported around 1.25 million EVs to various international markets, helping bring down prices—especially in emerging economies.