In a new report, the agency forecasts 20 million electric cars to be sold in 2025 – up from 17 million in 2024 – with sales already increasing by 35% year-on-year in the first quarter to break records in all major markets.
China maintains its position as the market leader, accounting for more than 70% of global production, with the 11 million electric cars sold in the country last year equivalent to the total worldwide in 2022.
Although uncertainties over global economic growth and the evolution of trade policies could affect the outlook, the IEA said EV sales are being supported by their “increasing affordability”.
Indeed, 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.
“Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” said IEA executive director Fatih Birol. “Sales continue to set new records, with major implications for the international auto industry.”
Almost one-fifth of electric car sales worldwide are of imported vehicles, according to the report, with China shipping nearly 1.25 million to other countries in 2024.
Two-thirds of all electric cars sold in China 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 US, battery electric cars were still 30% more expensive.
The report also reveals that electric truck sales increased by around 80% last year, accounting for close to 2% of all truck sales worldwide.
This comes after data from the NGO New AutoMotive revealed that EVs have had their strongest ever start to a year in the UK, with sales up 38% year-on-year in March.
"The UK's zero-emissions vehicle mandate is successfully driving up EV sales and enabling more drivers to go electric and benefit from cost savings and a better driving experience," commented Dan Caesar, CEO of Electric Vehicles UK.
"As ministers consider the future of the UK's zero-emissions vehicle mandate, the message from the data is clear: don't mess with success."
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Chris Seekings is the Deputy Editor of IEMA’s Transform magazine, which is published biomonthly for IEMA members. Chris’s role involves writing sustainability-related news, features and interviews, as well as helping to plan and manage the magazine’s other day-to-day activities.