Electric vehicles (EVs) are set to make up one-fourth of all new car sales globally in 2025, according to the International Energy Agencys (IEA) Global EV Outlook 2025. The report highlights that EV sales reached a record 17 million units in 2024, surpassing 20% of the global market share for the first time. Early 2025 figures indicate a 35% year-over-year increase in EV sales during the first quarter, with record-breaking numbers across major markets.
China continues to lead the global EV market, with nearly half of all vehicles sold in the country being electric in 2024. This equates to over 11 million EVs sold, exceeding the total global EV sales from two years prior. Emerging markets in Asia and Latin America also experienced significant growth, with EV adoption increasing by over 60% last year.
In the United States, EVs now account for more than 10% of all new car sales, reflecting an annual growth rate of approximately 10%. Conversely, EV sales in Europe have plateaued, maintaining a steady market share of around 20% as government incentives begin to wane.
IEA Executive Director Fatih Birol noted, “Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally.” He emphasized that ongoing record-breaking sales have substantial implications for the global automotive industry.
One of the primary drivers of this growth is the reduction in EV costs. In 2024, the average price of battery-electric vehicles decreased due to increased competition and declining battery costs. Notably, two-thirds of EVs sold in China were priced lower than their gasoline counterparts, even without subsidies. However, in markets like the U.S. and Germany, EVs remain approximately 30% and 20% more expensive upfront, respectively.
The report also highlights the rising importance of Chinese EV exports. In 2024, China exported 1.25 million EVs, accounting for about 20% of global EV sales. These exports have contributed to lower prices in emerging markets. Additionally, the electric truck segment saw an 80% global increase in sales last year, now representing over 2% of the truck market, with China leading this growth.
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