Electric vehicles (EVs) are expected to account for over 25% of global car sales in 2025, marking a significant shift in the automotive landscape, according to the International Energy Agency’s (IEA) newly released Global EV Outlook 2025. The report suggests that if current trends persist, EVs could represent more than 40% of worldwide car purchases by 2030.
In 2024, electric car sales reached a record 17 million units, pushing EVs past the 20% global market share mark for the first time. The growth continued into early 2025, with sales rising 35% year-on-year in the first quarter, setting new records across all major regions.
China Leads, Emerging Markets Accelerate
China remains the global frontrunner, where nearly half of all vehicles sold in 2024 were electric. The country recorded 11 million EV sales last year, more than the total global sales just two years earlier. Meanwhile, emerging economies in Asia and Latin America reported over 60% growth in EV sales over the same period, signalling rising momentum in developing markets.
The US saw a more modest 10% increase, with EVs now comprising over 10% of new vehicle purchases. In Europe, the market has levelled off at around 20% as government incentives began to phase out.
“Despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” said IEA Executive Director Fatih Birol. “Sales continue to set new records, with major implications for the international auto industry.”
Lower Prices Fuel Adoption
Declining vehicle prices are driving EV adoption. In 2024, heightened competition and falling battery costs led to a drop in EV prices. In China, two-thirds of EVs sold were cheaper than comparable petrol vehicles even without subsidies. However, in markets like the US and Germany, upfront EV costs remain higher, about 30% and 20% more, respectively.
Despite higher initial prices in some regions, EVs still offer lower running costs. The report notes that even if oil prices fell to $40 per barrel, operating an EV in Europe would cost about half as much as a petrol-powered car.
China’s Global Export Footprint Grows
China’s role in the global EV market is also expanding through exports. In 2024, the country exported 1.25 million EVs, contributing to nearly 20% of all electric vehicle sales globally. With China producing more than 70% of the world’s EVs, its exports have helped lower prices, particularly in emerging markets, making EVs more accessible to a broader range of consumers.
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