Global sales of electric vehicles (EVs) are projected to exceed 20 million in 2025, accounting for more than 25% of all new vehicles sold worldwide, according to the International Energy Agency (IEA) in its Global EV Outlook report released on Wednesday.
Despite ongoing economic uncertainties and pressure on the automotive sector, EV sales have maintained a strong growth trajectory. The report shows that 17 million electric vehicles were sold globally in 2024, marking the first time EVs captured more than 20% of the global auto market.
China remains the global leader, with over 11 million EVs sold in 2024 — matching the entire global EV sales volume of 2022. Notably, two-thirds of EVs sold in China last year were cheaper than conventional vehicles, despite the absence of government purchase incentives.
In emerging markets across Asia and Latin America, EV sales surged by 60% in 2024, highlighting the growing adoption beyond mature markets. The U.S. market recorded a 10% year-on-year increase, while Europe’s EV market stalled amid waning policy support and reduced incentives.
In Q1 2025, global EV sales rose by 35% compared to the same period last year, reinforcing expectations for another record-breaking year.
“EVs remain consistently cheaper to operate across many markets,” the IEA stated. “Even if oil prices fall to $40 per barrel, powering an EV at home in Europe still costs about half as much as running a petrol car.”
IEA Executive Director Fatih Birol emphasized the momentum, stating that EVs are on track to account for over 40% of all car sales by 2030, as prices continue to decline and adoption accelerates in emerging economies.
“Despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” Birol noted. “This year, we expect more than one in four cars sold worldwide to be electric.”
However, the report cautioned that the future trajectory of EV adoption will depend on global economic conditions, trade policies, and industrial strategies.
