More Than 1 in 4 Cars Sold Globally in 2025 Expected to Be EVs: IEA Report

According to the Global EV Outlook 2025 report from the International Energy Agency (IEA), 2025 is set to be big for EV sales. The report predicts that about one in four cars sold worldwide this year will be electric, despite overall market uncertainties.

In total, the agency has anticipated that more than 20 million EVs will be sold globally in 2025.

Based on the report findings, IEA reported that the EV market share is on track to pass 40% of all car sales by the end of the decade.

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

In particular, China is experiencing rapid growth in the transition to electric vehicles. Last year, nearly half of all cars sold in China were electric. Further, the more than 11 million EVs sold in China in 2024 surpassed the number of EVs sold globally in 2022, marking just how quickly the technology is spreading.

As Smart Energy International reported, China’s EV-promoting policies and competitive pricing have helped make the vehicles more accessible. The country continues to grow its EV market this year, with EV sales up 35% for January to April 2025, compared to January to April 2024, Rho Motion reported. This is in part thanks to the renewal of a trade-in subsidy initiative, where individuals can trade in older vehicles for new energy vehicles (NEV) for a subsidy of 20,000 yuan ($2,730) per vehicle.

According to IEA, battery electric vehicle costs declined globally, making it easier for consumers to make the switch, but in some places, like the U.S., the price remained higher than conventional fuel-powered vehicles. In the U.S., EV sales grew by 10% year-over-year in 2024, but uncertainty over tariffs implemented under President Donald Trump could impact EV market growth in the country.

Still, EVs remain an affordable option in the long-run for many countries. For instance, it costs less to charge with residential chargers in Europe compared to paying for gas, even if oil prices drop down to $40 per barrel, IEA reported.

Rho Motion has already reported a continued increase in global EV purchases so far in 2025 compared to 2024, with sales up 29% for the first four months this year. 

Similarly, IEA found that EV sales increased 35% globally for January through March 2025, even amid volatility in some markets.

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