Greater than 1 in 4 automobiles offered all over the world in 2025 are anticipated to be EVs, in accordance with a brand new report from the International Energy Agency (IEA). And if EVs keep on observe, they might make up over 40% of worldwide automobile gross sales by 2030.
The IEA’s Global EV Outlook 2025 report, launched right now, reveals the electrical automobile market remains to be charging forward, even with some bumps within the highway. Regardless of financial pressures on the auto sector, EV gross sales hit a report 17 million in 2024, pushing their world market share previous 20% for the primary time. That momentum carried into early 2025, with EV gross sales leaping 35% in Q1 year-over-year. All main markets noticed record-breaking Q1 numbers.
China continues to guide the EV race by a large margin. Almost half the automobiles offered there in 2024 have been electrical. That’s over 11 million EVs – greater than all the world offered simply two years earlier. EV adoption can also be booming in rising markets throughout Asia and Latin America, the place gross sales shot up by greater than 60% final yr.
Within the US, EV gross sales grew about 10% yr over yr, with electrical automobiles now making up over 10% of all new automobile gross sales. In the meantime, Europe’s EV gross sales hit a plateau. As authorities incentives began to taper off, the continent’s market share held regular at round 20%.
“Our information reveals that, regardless of important uncertainties, electrical automobiles stay on a powerful development trajectory globally,” stated IEA government director Fatih Birol. “Gross sales proceed to set new data, with main implications for the worldwide auto business.”
One of many essential drivers is decrease costs. The typical value of a battery electrical automobile dropped in 2024, due to elevated competitors and falling battery costs. In China, two-thirds of EVs offered final yr have been cheaper than their gas-powered counterparts, and that’s with out subsidies. However in markets just like the US and Germany, EVs are nonetheless pricier up entrance: round 30% extra within the US, and 20% extra in Germany.
Nonetheless, EVs win in terms of working prices. Even when oil drops to $40 per barrel, it’s nonetheless about half as costly to cost and run an EV at residence in Europe than to drive a gasoline automobile.
The report additionally notes the rising position of Chinese language EV exports. About 20% of all EVs offered globally final yr have been imported. China, which produces over 70% of the world’s EVs, exported 1.25 million of them in 2024. These exports have helped push down costs in rising markets.
And it’s not simply electrical automobiles which are on the rise. Electrical truck gross sales jumped 80% globally final yr, now making up practically 2% of the truck market. Most of that development got here from China, the place some heavy-duty electrical vehicles are already cheaper to run than diesel, even when the upfront value is greater.
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