Despite market disruptions in the global automotive industry — including U.S. tariffs — EV sales remain on an upward trajectory.
That’s according to a May report from the International Energy Agency, the global energy forum of 32 industrialized countries, including the United States. The IEA’s annual Global EV Outlook predicts that more than a quarter of vehicles sold around the world in 2025 will be electric.
In 2024, according to the report, more than 17 million EVs were sold worldwide, comprising more than 20% of all new vehicle sales. The number of sales grew by 25% compared to 2023. And sales only continue to grow: During the first quarter of 2025, global EV sales rose by 35% versus the same period in 2024.
“Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” IEA Executive Director Fatih Birol said in a statement, adding that EV sales are continuing to set new records. Birol also said that the share of EVs sold is expected to more than double within the next five years, reaching more than 40% of global car sales, thanks in large part to the growing affordability of EVs.
Last year, the average worldwide price of an EV generally fell, according to the report. But pricing varied by country. In China, two-thirds of EVs sold were cheaper than similar gas-powered vehicles — even without discounts and other promotions. At the same time, the report noted that the limited share of affordable EV models in the U.S. has hurt EV take-up. On average, the price of an EV in the U.S. is 30% higher than a similar gas-powered car. In addition, more than 75% of cars sold in the U.S. are SUVs, but only about 20% of electric SUVs are cheaper than their gas-powered counterparts.
The low prices of China’s OEMs have rapidly accelerated EV adoption in China, where more than half of vehicles sold last year were EVs. But EV production in China is also driving increased EV sales around the world — China EV sales were actually responsible for nearly two-thirds of all EV purchases worldwide, per the report.
The report also said that EV growth is accelerating in emerging economies, which include countries such as Brazil, India, Indonesia, Mexico and Thailand. In these regions, EV sales increased by more than 60% in 2024 alone. The increase is largely due to EV affordability, as the report noted the cheapest EVs in Brazil, India, Indonesia, Mexico and Thailand were made by China-based OEMs and were often the least expensive vehicles on the market — cheaper even than gas-powered vehicles, per the report.
While EV sales increased in the U.S. in 2024, sales growth declined compared to 2023. Still, the EV market in the U.S. continues to expand; 24 new models were introduced in 2024, bringing the total number of new EV models brought to market since 2020 to 110, the report said.
