The electric vehicle (EV) market is on a remarkable trajectory, with projections that more than 25% of cars sold globally in 2025 will be electric.
The International Energy Agency (IEA) forecasts this figure could rise to over 40% by 2030, driven by solid sales momentum and shifting consumer preferences.
In 2024, EV sales reached an unprecedented 17 million units, marking the first time their global market share surpassed 20%. This growth is no fluke; according to recent IEA data, EV sales jumped by 35% year-over-year in the first quarter of 2025, further solidifying the segment’s strong position within the automotive industry.
China Leads the Charge: Nearly Half of All Cars Sold Are Electric
China continues to dominate the EV landscape, with nearly half of all cars sold in the country last year being electric, which amounts to over 11 million sales—more than the total global sales recorded just two years prior. Emerging markets in Asia and Latin America are also seeing substantial increases, with EV sales rising over 60% in those regions last year.
In the United States, electric vehicles comprise more than 10% of new car sales, reflecting a 10% year-over-year growth. Conversely, the European market has hit a plateau, stabilizing around 20% due to dwindling government incentives. Despite these challenges, IEA Executive Director Fatih Birol emphasized that “electric cars remain on a strong growth trajectory globally.”
One major contributor to this growth is the decline in EV prices. The average cost of electric vehicles fell in 2024, with two-thirds of EVs sold in China cheaper than their gasoline counterparts—despite the absence of subsidies. Even in Europe, where the cost of oil sits at $40 per barrel, operating an EV remains approximately half as expensive as traditional gasoline vehicles.
China’s prowess as a global EV manufacturer is also notable, exporting 1.25 million electric vehicles in 2024—accounting for 20% of sales worldwide. As affordability increases and infrastructure develops, the electric vehicle revolution shows no signs of slowing down.