Global EV Market On Track To Top 40% By 2030: IEA

The global market for electric vehicles is on course to exceed 40 percent of all car sales by 2030, despite economic uncertainties, the International Energy Agency (IEA) said in a report released Tuesday.

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EVs are becoming increasingly affordable in more markets, the IEA noted in its annual Global EV Outlook.

China remained the dominant force, with electric cars making up nearly half of all car sales in 2024. The country sold more than 11 million electric cars last year, equal to the total number sold globally in 2022.

Emerging economies in Asia and Latin America have also seen rapid growth, with EV sales in those regions surging by more than 60 percent in 2024.

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Following another year of record growth, global electric car sales are expected to surpass 20 million in 2025—over a quarter of all new car sales worldwide.

In 2024, EV sales reached more than 17 million, pushing the global market share of electric cars above 20 percent for the first time.

Sales in the first quarter of 2025 rose 35 percent year-on-year, with all major markets posting new first-quarter records.

China leads, the US climbs, and Europe stagnates

In the United States, EV sales grew about 10 percent, with electric vehicles making up more than one in ten new car sales.

In Europe, EV sales plateaued at around 20 percent market share, as the phaseout of subsidies and weaker support policies slowed growth.

“Despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” said IEA Executive Director Fatih Birol. “This year, we expect more than one in four cars sold worldwide to be electric. By 2030, it will be more than two in five as EVs become increasingly affordable.”

The IEA cautioned that global growth trends and evolving industrial policies could still impact the outlook.

Prices drop, operating costs stay low

Globally, the average price of battery electric cars fell in 2024, driven by increased competition and lower battery costs.

In China, two-thirds of EVs sold last year were cheaper than their petrol or diesel counterparts, even without government subsidies.

But in many developed markets, EVs remain pricier. In Germany, electric cars were 20 percent more expensive than conventional vehicles; in the United States, the gap was closer to 30 percent.

However, EVs remain cheaper to operate in most countries. Even if oil prices fell to $40 a barrel, the cost of charging at home in Europe would still be about half the cost of running a petrol car, the report said.

China dominates the global EV supply

China accounted for over 70 percent of global EV production in 2024 and exported nearly 1.25 million electric cars—many to emerging markets where prices have fallen sharply due to Chinese imports.

The report also spotlighted electric trucks, whose global sales jumped 80 percent in 2024. They now account for close to 2 percent of all truck sales worldwide.

China again led the way, doubling its sales of electric trucks last year. Some heavy-duty models were already cost-competitive with diesel trucks, thanks to significantly lower operating costs.