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EV sales now account for 20% of the car market and will hit 40% by 2030

By: Equities.com

May 14, 2025 at 10:45 AM EDT

EV sales now account for 20% of the car market and will hit 40% by 2030

Sales of electric vehicles worldwide are on track to exceed 20 million this year, as EV sales now represent more than 20% of the car market for the first time, data out this week from the International Energy Agency shows.

And the IEA forecasts that the percentage of EV sales will double in the second half of the decade, accounting for 40% of all sales by 2030, as EVs become relatively more affordable vs. conventional internal combustion vehicles.

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

“This year, we expect more than one in four cars sold worldwide to be electric, with growth accelerating in many emerging economies. By the end of this decade, it is set to be more than two in five cars as EVs become increasingly affordable.”

More than 17 million EVs were sold in 2024, a record number. And in the first three months of 2025, electric car sales jumped 35% year over year, setting another new record for first-quarter sales.

China remains the EV market leader, with electric cars accounting for almost half of all car sales in 2024. The number of electric cars sold in China last year (more than 11 million) is equivalent to the total sold worldwide in 2022.

Emerging markets in Asia and Latin America have also become new centers of growth, with total electric car sales across these regions surging by more than 60% in 2024.

In the United States, electric car sales grew by about 10% year-on-year, reaching more than one in ten cars sold. Europe saw sales stagnate as subsidy schemes and other supportive policies waned, though the market share of electric cars remained around 20%.

The IEA noted that uncertainties over global economic growth and the evolution of trade and industrial policies could affect its EV outlook, but said sales of EVs are being supported by their increasing affordability.

Other study highlights:

The average price of a battery electric car fell globally in 2024 amid growing competition and declining battery costs. In China, two-thirds of all electric cars sold last year were priced lower than their conventional equivalents, even without purchase incentives.
However, the purchase price gap with conventional cars persisted in many other markets. The average battery electric car price in Germany, for example, remained 20% higher than that of its conventional counterpart. In the United States, battery electric cars were still 30% more expensive.
EVs remain consistently cheaper to operate across many markets, based on current energy market prices. Even if oil prices were to fall as low as $40 per barrel, running an electric car in Europe via home charging would still cost about half as much as running a conventional car at today’s residential electricity prices.
Globally, electric truck sales increased by around 80% last year, accounting for close to 2% of all truck sales worldwide. This growth, driven by a doubling of sales in China, was supported by the cost-competitiveness of some heavy-duty electric trucks in China compared with their diesel equivalents – with the electric models’ much lower operating costs offsetting their higher purchase prices.

The IEA also unveiled updated versions of two online tools: the Global EV Data Explorer and the Global EV Policy Explorer, which allow users to further explore EV statistics, projections and policy measures worldwide.

The IEA is also preparing a special report on the future of the global car industry as EV adoption accelerates. The new report, due to be published this summer, will include analysis on how to ensure the competitiveness and resilience of supply chains for a car industry in transition.

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EV sales now account for 20% of the car market and will hit 40% by 2030

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