According to the International Energy Agency’s latest Global EV Outlook, sales of electric vehicles (EVs) are accelerating globally, despite trade pressures and market disruptions, including U.S. tariffs.
In 2024, more than 17 million EVs were sold worldwide, representing over 20% of all new vehicle sales- a 25% increase compared to the previous year. That momentum continued into early 2025, with first-quarter EV sales rising 35% year-over-year.
Falling prices are aiding to fuel the surge. While average EV prices decreased globally last year, affordability varied by region. In China, two-thirds of EVs sold were less expensive than comparable gasoline vehicles, even without discounts or incentives. That pricing advantage helped push EVs to account for more than half of all car sales in the country.
In contrast, EV adoption in the U.S. remains more limited due to higher prices and fewer affordable options. On average, EVs in the U.S. cost 30% more than comparable gas-powered vehicles. Additionally, while SUVs dominate U.S. car sales, only about 20% of electric SUV models are priced lower than their gas counterparts.
Emerging markets are also seeing rapid growth. Countries such as Brazil, India, Indonesia, Mexico, and Thailand experienced a more than 60% increase in EV sales in 2024. Much of this growth is attributed to the affordability of Chinese-made EVs, which, in many cases, were the least expensive cars on the market, including those with internal combustion engines (ICE).
The IEA, an energy policy organization representing 32 countries, including the U.S., publishes the Global EV Outlook annually to analyze global EV market trends and project future growth.
