Global sales of electric vehicles are estimated to exceed 20 million this year, accounting for more than 25% of total vehicle sales.
This is according to an International Energy Agency report released on Wednesday.
According to the Global EV Outlook report, sales are continuing to expand despite global economic uncertainty and constraints on the automotive sector.
While global sales exceeded 17 million in 2024, these cars’ market share surpassed 20% for the first time.
China maintained its market leadership, accounting for more than half of all sales last year.
The 11 million electric vehicles sold in China in 2024 matched the entire number of electric vehicles sold worldwide in 2022.
Last year, EV sales in growing Asian and Latin American regions increased nearly 60%.
In the U.S., the sales were up by 10 per cent year-on-year, while they remained stagnant in Europe as incentives and supportive policies weakened.
Two-thirds of electric vehicles sold in China in 2024 were priced below conventional vehicles in spite of a lack of purchase incentives, but the gap between electric and conventional vehicle prices remained wide in many countries.
In the first three months of this year, electric vehicle sales rose by 35 per cent year-on-year.
It said that with continued growth, total electric vehicle sales are expected to exceed 20 million this year.
“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,” the report said.
However, Global economic growth, trade development, and industrial policies may affect the outlook for the electric vehicle sector, but sales are being supported by electric vehicle prices becoming more affordable.
“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,” he added.
