The International Energy Agency (IEA) forecasts that electric vehicles (EVs) will capture over 40% of the global car market by 2030, driven by increasing affordability and expanding adoption worldwide. Following strong growth in recent years, global EV sales are expected to surpass 20 million units in 2025, representing more than one-quarter of all new car sales, according to the latest Global EV Outlook.
In 2024, EV sales topped 17 million, pushing the global market share beyond 20% for the first time. Early 2025 data shows a 35% year-over-year increase in EV sales during the first quarter, with record-breaking figures across major markets. China continues to dominate, with EVs accounting for nearly half of all vehicle sales in 2024. The volume of electric cars sold there last year exceeded 11 million—equivalent to the worldwide total in 2022. Emerging markets in Asia and Latin America also showed rapid growth, with sales jumping over 60% in 2024.
The United States saw a roughly 10% increase in EV sales year-over-year, with EVs making up more than 10% of new car sales. Meanwhile, Europe experienced stagnation in sales as subsidies and incentives diminished, but EV market share held steady around 20%.
Despite uncertainties around global economic growth and trade policies, the IEA highlights that growing affordability is a key factor supporting EV adoption. Globally, average battery electric vehicle prices dropped in 2024 due to intensified competition and falling battery costs. In China, two-thirds of EVs sold were priced below comparable gasoline cars even without subsidies. However, price premiums remain in other markets, with battery EVs costing about 20% more than conventional cars in Germany and 30% more in the United States.
Operating costs for EVs continue to be lower in many regions under current energy prices. Even if oil prices dropped to $40 per barrel, charging an EV at home in Europe would cost roughly half as much as fueling a gasoline vehicle at current electricity rates.
Nearly 20% of EV sales worldwide involve imported vehicles, with China exporting around 1.25 million electric cars in 2024, many to emerging economies where imports have helped reduce prices. The report also spotlights electric trucks, which saw sales grow approximately 80% last year to nearly 2% of total truck sales globally. This growth is largely driven by China, where lower operating costs offset higher purchase prices for heavy-duty electric trucks.
The IEA also updated interactive tools for exploring EV data and policies and plans a special summer report on the future of the global automotive industry amid this accelerating shift to electric mobility.
