The International Energy Agency (IEA) projects that electric vehicles (EVs) will account for over 25% of global car sales in 2025, marking a significant milestone in the shift towards sustainable transportation.
This forecast is detailed in the IEA’s latest Global EV Outlook report.
In 2024, global EV sales surpassed 17 million units, representing more than 20% of total car sales for the first time.
The momentum continued into the first quarter of 2025, with a 35% year-on-year increase in electric car sales.
China remains the dominant force in the EV market, accounting for over half of global electric car sales in 2024.
The country’s success is attributed to competitive pricing and strong domestic manufacturing. About two-thirds of electric cars sold in China in 2024 were priced lower than their internal combustion counterparts.
Emerging markets in Asia and Latin America have also experienced significant growth, with electric car sales across these regions surging by more than 60% in 2024.
However, the trend is less uniform elsewhere.
The EV market is only emerging in Africa, with Ghana, Morocco, South Africa, Tanzania, and Ethiopia currently leading adoption on the continent.
In Europe, growth has stalled amid subsidy rollbacks and weaker new emissions targets.
In the US, despite a 10% rise in sales, the IEA has downgraded its long-term EV projections following policy reversals and slower-than-expected uptake.
The expanding EV fleet is already impacting fossil fuel demand.
According to the IEA, EVs reduced oil demand by an estimated 1.3 million barrels per day in 2024.
IEA Executive Director Fatih Birol stressed EVs have continued a strong global growth trajectory despite ongoing economic and policy uncertainties.
“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,” he said.
Looking ahead, the IEA estimates that current EV growth will help avoid over 2 gigatonnes of CO₂ emissions by 2035, even after accounting for emissions from electricity generation.
As the cost of electric vehicles continues to fall, their adoption is expected to accelerate, contributing significantly to global efforts to reduce greenhouse gas emissions and combat climate change.