IEA: Global EV Outlook 2025
May 26, 2025
The Global EV Outlook is an annual publication that reports on recent developments in electric mobility around the world. It is developed with the support of members of the Electric Vehicles Initiative (EVI).
The report draws on the latest data to assess trends in electric vehicle deployment, demand for their batteries and charging infrastructure. It considers recent policy developments and industry strategies shaping the outlook for electric vehicles in different markets. This edition features analysis of electric vehicle affordability, manufacturing and trade of electric cars and their batteries, and the total cost of ownership of electric heavy-duty trucks across various markets, and makes projections to 2030.
The report is complemented by updated versions of two online tools: the Global EV Data Explorer and the Global EV Policy Explorer, which allow users to further explore EV statistics and projections, and policy measures worldwide.
Go HERE to view the report
Highlights
Electric car sales exceeded 17 million globally in 2024, reaching a sales share of more than 20%. Just the additional 3.5 million electric cars sold in 2024 compared with the previous year is more than the total number of electric cars sold worldwide in 2020.
Emerging markets in Asia and Latin America are becoming new centres of growth, with electric car sales jumping by over 60% in 2024 to almost 600 000 – about the size of the European market 5 years earlier. In Southeast Asia, electric car sales grew by nearly 50% to represent 9% of all car sales in the region, with notably higher sales shares in Thailand and Viet Nam.
Electric car sales in 2025 are expected to exceed 20 million worldwide to represent more than one-quarter of cars sold worldwide. Sales were up 35% year-on-year in the first three months of 2025, with record first-quarter sales in all major markets. In China, the continuation of incentives for replacing older vehicles and falling electric car prices mean electric cars are projected to reach around 60% of total car sales in the country in 2025.
Despite uncertainties in the outlook, the share of electric cars in overall car sales is set to exceed 40% in 2030 under today’s policy settings. China is poised to continue leading in electric car sales to 2030, achieving a sales share of around 80% on the back of significant market momentum and competitively-priced EVs.
Uncertainty about the evolution of trade and industrial policy, downside risks to the economic outlook, and lower oil prices could affect EV uptake – but also car markets overall. Higher tariffs might increase the price of cars, including electric cars, and their components; lower GDP growth could dampen car sales; and lower oil prices affect the fuel cost savings from the use of electric cars. The way these factors will play out in practice is uncertain, but on aggregate they look to pose risks for overall car sales volumes more than for the share of EVs.
China continues to be the world’s EV manufacturing hub and is responsible for more than 70% of global production. Car manufacturers headquarted in China predominantly cater to the domestic market, accounting for around 80% of domestic sales in 2024 and almost all of the 25% growth in global EV production. In the European Union, production stalled at 2.4 million electric cars in 2024.
North America saw contrasting trends: US production declined whereas Mexico’s output doubled, supported by comparatively low manufacturing costs. Roughly 70% of Mexico’s output was from US-headquartered manufacturers.
Production also increased by 15% in Asia Pacific countries other than China, reaching about 1 million electric cars, mostly from incumbent carmakers from Japan and Korea.
As a global average, the price of battery electric cars fell in 2024, but the purchase price gap with conventional cars persisted in many 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 remained 30% more expensive, dampening future sales growth expectations. In contrast, two-thirds of all electric cars sold in China in 2024 were priced lower than their conventional equivalents, without considering purchase incentives for EVs. This helped boost sales even as government incentives decreased.
Charging capacity is an important measure of the adequacy of public charging networks. The number of ultra-fast chargers, with power ratings of 150 kilowatts (kW) and above, grew by about 50% in 2024 and now account for nearly 10% of all public fast chargers. Public slow chargers in urban areas are a solution for EV owners without access to home charging, but fast chargers along highways help enable long-distance trips.
