More than 1 in 4 cars sold this year are electric: IEA report

Electric vehicle sales are growing faster than ever. More than one in four cars sold globally in 2025 will be electric, according to the International Energy Agency (IEA). Sales topped 17 million in 2024 and are expected to exceed 20 million this year. Under current policies, EVs could account for over 40% of all car sales by 2030.

Electric car sales break records 

The number of electric cars on the road reached 58 million by the end of 2024, making up 4% of the total car fleet. These vehicles displaced over 1 million barrels of oil per day. That number could rise to 5 million barrels a day by 2030.

“Despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” said Fatih Birol, Executive Director of the IEA. “Sales continue to set new records, with major implications for the international auto industry.”

China is driving global growth. In 2024, EVs made up nearly half of all car sales in the country. China sold over 11 million electric cars—equal to the total global sales just two years earlier—and exported 1.25 million. Many of those went to emerging markets, where prices are now more competitive.

Other regions are also seeing a sharp rise. EV sales in Asia and Latin America jumped by over 60% in 2024, reaching 600,000 units. That’s the same size as Europe’s market five years ago. The US saw slower growth, with sales rising just 10%, down from 40% in 2023. In Europe, the market stayed flat, with subsidy cuts dampening demand in key countries like Germany and France.

Price drops boost global adoption

EV prices are falling in many parts of the world. In China, two-thirds of EVs sold in 2024 were cheaper than petrol cars, even without government incentives. But price gaps remain. In the US, EVs cost about 30% more than traditional vehicles. In Germany, the gap is 20%. Still, lower operating costs give EVs an advantage. Charging an EV at home in Europe costs roughly half as much as filling up with petrol, even with oil at $40 per barrel.

The shift goes beyond cars. Electric truck sales surged by 80% in 2024, now making up 2% of global truck sales. China leads this segment too. Electric heavy-duty trucks are already cost-competitive in some areas due to lower fuel and maintenance costs.

Two- and three-wheelers are also gaining ground. In 2024, more than 9% of these vehicles worldwide were electric. India became the world’s largest market for electric three-wheelers, with sales climbing 20% to 700,000 units. The country’s new PM E-DRIVE scheme is expected to boost adoption further.

Policy shifts drive regional differences

Policy changes are playing a major role. In Germany, ending a €4,500 subsidy in late 2023 caused a 4% drop in EV market share in 2024. France cut subsidies for high-income buyers and limited eligibility. In the UK, sales continued to rise despite subsidy removal, supported by tax breaks for company cars, which made up 60% of registrations.

The US changed its Clean Vehicle Tax Credit in early 2024, offering instant discounts at the point of sale. Buyers could get up to $7,500 off a new EV or $4,000 for a used one. But only about 20 models qualified, which held back growth. In 2025, President Donald Trump issued an executive order to review all EV-related market interventions. New legislation could eliminate the tax credit entirely, which may slow future sales.

What’s next for EV market?

In emerging markets, policy incentives are helping drive growth. Colombia and Costa Rica doubled EV sales in 2024 due to tax breaks. Ethiopia banned petrol and diesel car imports, adding 100,000 EVs. Still, issues remain. Repair shops struggle to find spare parts, and charging stations are rare outside major cities.

“Policy support is crucial,” said Birol. “We are seeing major gains in countries that have made EVs affordable and accessible through smart policy choices.”

Government spending per vehicle is shrinking. In 2024, public subsidies and incentives accounted for less than 7% of global EV spending, down from 20% in 2017. China continues to invest, offering tax exemptions and a trade-in bonus that favored EVs. The country spent an estimated $2.7 billion on EV support in 2024.

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