The global shift to electric vehicles is accelerating faster than ever. According to the newly released Global EV Outlook 2025 from the International Energy Agency (IEA), more than one in four new cars sold worldwide this year will be electric. And if the current trend continues, EVs could account for over 40% of global car sales by 2030.
Despite economic headwinds, the EV market remains strong. A record-breaking 17 million electric vehicles were sold globally in 2024, pushing EVs past the 20% mark in total market share for the first time. That momentum has carried into 2025: in the first quarter alone, EV sales surged by 35% compared to the same period last year.
China leads the charge
China remains the clear frontrunner in EV adoption. Nearly half of all new cars sold in the country in 2024 were electric—amounting to over 11 million vehicles. That figure alone surpasses total global EV sales from just two years ago.
This dominance is driven by a combination of incentives and strict regulations. In many Chinese cities, combustion-engine vehicles face heavy restrictions or outright bans, pushing consumers toward electric alternatives.
Asia and Latin America are also seeing sharp increases in EV adoption, with several developing nations reporting sales growth of over 60% last year.
In contrast, EV sales growth in the U.S. was more modest, rising by about 10% in 2024. The country has now reached an EV market share slightly above 10%.
Europe, once a leader in the transition, has seen a plateau. As government subsidies are phased out, the region’s EV market share has stabilized around 20%. However, renewed incentives may be on the horizon, and increased competition—especially from Chinese automakers—is already pushing prices down.
Still, the Nordic countries continue to outperform the rest of the continent. In Denmark, EVs accounted for a remarkable 83% of new car sales in April, a trend mirrored across the region.
Falling prices drive demand
One key driver behind global EV growth is falling prices. In 2024, the average price of electric cars declined, largely due to more affordable battery technology and intensified competition. In China, two-thirds of EVs sold were already cheaper than their gasoline counterparts—even without subsidies.
However, this price advantage hasn’t fully reached Western markets. In the U.S., EVs are still around 30% more expensive than internal combustion vehicles on average, while in Germany the gap is about 20%. Nevertheless, operating costs are substantially lower. Even with crude oil prices dropping to $40 per barrel, charging an EV at home remains roughly half the cost of fueling a gasoline car in Europe.
China’s export power
China’s role is expanding beyond its domestic market. In 2024, the country exported 1.25 million electric vehicles—accounting for over 70% of global EV production. About 20% of all EVs sold worldwide were imported, and China supplied the vast majority of them.
Chinese EVs, often significantly cheaper than their Western counterparts, are gaining market share in emerging regions including Asia, the Middle East, and South America. This growing export volume is putting pressure on prices globally and increasing accessibility to electric mobility.
Electric trucks on the rise
The electrification wave is not limited to passenger cars. Electric truck sales jumped by 80% in 2024 and now make up just under 2% of the global truck market. China is again leading the way, where some electric trucks are already more cost-effective to operate than diesel models, despite higher upfront costs.
