In a groundbreaking development for the automotive sector, the latest report from the International Energy Agency (IEA) reveals that the market share of electric vehicles (EVs) is on track to exceed 40% by 2030. This remarkable shift comes as electric cars become increasingly affordable across various markets, despite enduring economic uncertainties.

The IEA's annual Global EV Outlook report, released today, highlights a year of substantial growth for electric car sales, projecting that global sales will surpass 20 million by 2025. This figure represents more than a quarter of all cars sold worldwide, a significant milestone for the EV market.

According to the report, sales of electric cars achieved impressive figures, exceeding 17 million globally in 2024, which marked the first time EVs claimed over 20% of the global car market as previously anticipated by the IEA. Notably, within the first three months of 2025 alone, electric car sales surged by 35% compared to the same period the previous year, setting new records in major markets and beyond.

China continues to dominate the electric vehicle landscape, with nearly half of all car sales in the country being electric in 2024. The volume of electric cars sold in China last year, exceeding 11 million, is strikingly equivalent to the total number sold worldwide just two years earlier in 2022. Moreover, emerging markets in Asia and Latin America are witnessing rapid growth, with electric car sales in these regions soaring by over 60% in 2024.

In the United States, the trend shows promise as well, with electric car sales experiencing a growth rate of about 10% year-on-year, amounting to more than one in ten vehicles sold. Meanwhile, European sales have stagnated, influenced by the phasing out of subsidy schemes and other supportive policies, yet the market share of electric cars remained stable at around 20%.

Fatih Birol, Executive Director of the IEA, emphasized the ongoing growth trajectory of electric cars amidst prevailing uncertainties. “Our data shows that despite significant uncertainties, electric cars remain on a strong growth trajectory globally. Sales continue to set new records, with major implications for the international auto industry,” Birol stated. He further noted that more than one in four cars sold worldwide is expected to be electric this year, with growth rates accelerating in numerous emerging economies. By the decade's end, projections indicate that the figure will climb to more than two in five cars.

However, the report also acknowledges potential uncertainties concerning global economic growth and changes in trade and industrial policies that may influence this outlook. Nonetheless, the report underscores how the increasing affordability of EVs supports their rising sales.

On a global scale, the average price of battery electric cars has seen a decline in 2024, driven by heightened competition and reduced battery costs. In China, a remarkable two-thirds of all electric cars sold last year were priced lower than their internal combustion engine counterparts, even in the absence of purchase incentives. However, the price gap between electric and conventional cars remains significant in various markets. For instance, the average price of a battery electric car in Germany was still 20% higher than that of a traditional vehicle, while in the United States, electric vehicles were approximately 30% more expensive.

Despite these price discrepancies, electric vehicles offer considerable operational cost savings across many regions, especially in light of current energy market prices. For instance, even if oil prices were to plummet to $40 per barrel, running an electric car via home charging in Europe would still be roughly half the cost of operating a conventional vehicle at today’s residential electricity rates.

The report also notes that approximately one-fifth of electric car sales globally involve imported vehicles. China, which is responsible for more than 70% of global EV production, exported nearly 1.25 million electric cars to other nations in 2024. This influx has been particularly beneficial for emerging economies, where electric car prices have dropped significantly due to these imports.

Furthermore, the report features a special emphasis on electric trucks and their associated ownership costs. It reveals that worldwide electric truck sales surged by around 80% last year, now representing close to 2% of all truck sales globally. This surge, largely fueled by a doubling of sales in China, is attributable to the competitive pricing of certain heavy-duty electric trucks in comparison to their diesel equivalents, where the lower operating costs of electric models help to mitigate their higher purchase price.

Accompanying this new outlook, the IEA has updated its online tools, including the Global EV Data Explorer and the Global EV Policy Explorer, enabling users to delve deeper into EV statistics, projections, and policy measures on a worldwide scale. Additionally, the IEA is gearing up to release a special report focusing on the future of the global car industry in light of the rapid adoption of electric vehicles. This forthcoming report, expected to be unveiled this summer, will provide critical analysis on ensuring the competitiveness and resilience of supply chains in an evolving automotive landscape.