Electric vehicle (EV) sales around the world have grown fast in recent years. In 2024, global electric car sales topped 17 million, representing over 20% of all new cars sold worldwide. That’s more than triple the number sold just 4 years earlier, according to the latest report by the International Energy Agency.
The momentum continues into 2025, with EV sales expected to exceed 20 million, or more than one-quarter of all new vehicle sales globally. The year kicked off strong: in the first quarter alone, more than 4 million EVs were sold, marking a 35% increase compared to Q1 2024.
This explosive growth shows how quickly the global auto market is shifting toward electric mobility—driven by falling battery prices, better infrastructure, and strong policy support in key markets.
Countries like China, the United States, and several in Europe are leading the charge in this shift. Their efforts are helping to reduce emissions, cut oil use, and push new technologies into the spotlight.
Let’s take a deeper dive into the IEA’s Global EV Outlook 2025 Report to see who’s leading the electric car revolution and other key industry trends.
China’s EV Empire Expands
China has once again proven itself the global leader in electric car adoption. In 2024, electric vehicles made up almost 50% of all car sales in the country. China also accounted for nearly two-thirds (65%) of all electric cars sold worldwide that year.
What’s driving this boom? One reason is cost. Over half of all electric cars sold in China now cost less than similar gasoline-powered models.
Government support has also played a big role. For example, in April 2024, China launched a trade-in program that encourages people to buy new electric or gasoline cars by giving them money to exchange old ones. While this scheme supports both types of vehicles, it has helped electric cars become even more attractive to buyers.
As seen below, the Chinese government has spent USD30 billion on EV production.
In addition, the Chinese government has extended EV tax exemptions through 2027 and trade-in grants through 2025. These policies give people more reasons to go electric. With all these efforts, under current policies, China is expected to hit an 80% EV sales share by 2030.
Europe Charges Ahead Despite Road Bumps
Europe continues to be a strong performer in the electric car space. Many European countries are seeing electric cars take up a larger share of new vehicle sales. In places like Norway, the share is already above 80%, while in others like Germany, France, and the Netherlands, the share is steadily rising.
The European Union supports this growth by setting strict emissions limits, offering purchase incentives, and investing in charging infrastructure.
In fact, some countries have already announced bans on the sale of new gasoline and diesel cars by the early 2030s. This sends a clear signal to both consumers and automakers to prepare for an all-electric future.
Even though sales dipped slightly in some parts of Europe during the first half of 2024 due to inflation and policy changes, demand bounced back in the second half of the year. Falling battery costs and a wide range of available models helped fuel this recovery. Europe remains a critical market, making up around 20% of global EV sales.
The European Automobile Manufacturers Association (ACEA) reports that new electric car registrations in Europe, including the UK, grew by 28% in the first quarter. This increase brought the total to 573,500 units, mainly driven by a strong rebound in Germany.
America Hits the Accelerator
The United States also saw strong growth in electric car sales in 2024 and early 2025. Sales rose about 20% compared to the previous year.
The Inflation Reduction Act (IRA), passed in 2022, played a big part in this rise. The IRA gives buyers tax credits for new and used electric vehicles and helps manufacturers build EVs and batteries in the U.S.
By the end of 2024, EVs made up about 10% of new car sales in the U.S. California leads all states, with EVs making up over 25% of new car sales. Other states, such as New York and Washington, are following closely behind.
New models from both U.S. and international carmakers are giving buyers more choices than ever. At the same time, the charging network is expanding, making it easier for people to switch to electric.
Other Countries Show Promise
While China, Europe, and the U.S. lead in total sales, several other countries are making big progress in 2025:
- India is seeing fast growth, especially in two- and three-wheeled EVs. Affordable electric scooters and rickshaws are helping more people go electric. While electric car sales are still low, the numbers are growing quickly thanks to local manufacturing and incentives.
- Southeast Asia, including countries like Thailand, Vietnam, and Indonesia, is beginning to scale up EV sales. Thailand aims to make 30% of its electric car production by 2030 and has started to attract foreign EV investment.
- Latin America is still in the early stages, but countries like Brazil, Colombia, and Chile are rolling out policies to support EV growth. Charging networks are expanding slowly, and imports of electric vehicles are increasing.
Charging Infrastructure Supports Growth
One major reason behind the EV boom is the growing number of charging stations. In 2024 alone, the world added over 2 million public chargers, with most of them in China and Europe.
Fast chargers, which can charge a car in under 30 minutes, are becoming more common, making EVs practical even for long trips. Chinese carmaker BYD has announced its breakthrough in EV battery charging in just 5 minutes last month.
In the U.S., public charging infrastructure is also improving. The federal government has invested billions in new charging stations, with a goal of building a nationwide network that works for everyone. More reliable and widespread charging reduces “range anxiety,” the fear that an EV will run out of battery far from a charger.
However, a major news came out recently that the Trump administration froze the $5 billion funding intended to EV chargers. This led some US states to bring the matter to court. The final decision will greatly impact the industry.
Automakers Race to Meet Demand
Automakers worldwide are responding to this demand shift. Nearly every major car company now offers electric models, and many plan to go fully electric in the next 10 to 15 years. For example:
- General Motors aims to sell only zero-emission vehicles by 2035.
- Volkswagen plans to make EVs 70% of its European sales by 2030.
- BYD has already stopped making gas-only cars and is expanding rapidly into global markets.
The competition helps lower costs and improve technology. Battery range is improving, and newer models are becoming more affordable. As EVs get better and cheaper, more people are choosing them over traditional cars.
The EV market shows no sign of slowing down. If battery prices continue to fall and policies stay strong, sales in 2025 may hit a new record. With continued global effort, EVs could become the norm by the end of the decade.
