Electric cars are on track for over a 40% global market share by 2030, a new report from the International Energy Agency (IEA) reveals.

A quarter of global car sales this year are set to be electric

The report also reveals that global sales of electric cars are on track to surpass 20 million this year, accounting for over a quarter of cars sold worldwide.

The predictions follow a 35% rise in EV sales over the first three months of 2025, as all major markets, and many others, saw new records.

Global sales of electric cars have continued to break records as electric models become increasingly affordable amid growing competition and declining battery costs.

China maintains its position as the EV market leader, with electric cars accounting for almost half of all car sales in 2024. The number of electric cars sold in China last year (more than 11 million) is equivalent to the total sold worldwide in 2022. Emerging markets in Asia and Latin America have also become new centres of growth, with total electric car sales across these regions surging by more than 60% in 2024.

In the United States, electric car sales grew by about 10% year-on-year, reaching more than one in ten cars sold. Europe saw sales stagnate as subsidy schemes and other supportive policies waned, though the market share of electric cars remained around 20%.

IEA executive director Fatih Birol said: “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. 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.”

On a global level, the average price of a battery electric car fell in 2024. In China, two-thirds of all electric cars sold last year were priced lower than their conventional equivalents, even without purchase incentives. However, the purchase price gap with conventional cars persisted in many other markets. The average battery electric car price in Germany, for example, remained 20% higher than that of its conventional counterpart. In the United States, battery electric cars were still 30% more expensive.

EVs remain consistently cheaper to operate across many markets, based on current energy market prices.

IEA data reveals that 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.

Dominic Phinn, head of transport at Climate Group, said: “Policymakers are running out of excuses not to be bolder. In ever more diverse markets, EV sales are surging, prices are dropping.

“Now is the time to create the conditions for this transition to really accelerate. Boost your charging infrastructure. Ensure the electricity grid is ready. Make sure automakers are set on a clear path to full electrification. Help consumers in their choices. And support companies with vehicle fleets – they’re the ones who are currently leading this shift in markets around the world.

“The direction of travel is clear: road transport will be cleaner, healthier and smarter. The winners are those who’ll get there first.”

The IEA is also preparing a special report on the future of the global car industry as EV adoption accelerates. The new report, due to be published this summer, will include analysis on how to ensure the competitiveness and resilience of supply chains for a car industry in transition.