It is anticipated that more than 20 million electric vehicles would be sold worldwide this year, making up more than 25% of all automobile sales.
The International Energy Agency said as much in a report released on Wednesday.
Despite constraints on the automobile industry and uncertainty in the global economy, sales of EVs are still increasing, according to the Global EV Outlook report.
Even though there were more than 17 million cars sold worldwide in 2024, these cars’ market share surpassed 20% for the first time.
With over half of last year’s sales coming from China, the country continued to dominate the market.
The total number of electric vehicles sold globally in 2022 was comparable to the 11 million sold in China in 2024.
Additionally, last year saw a 60% increase in EV sales in emerging regions in Asia and Latin America.
While sales in Europe stagnated as incentives and supportive legislation waned, they increased by 10% year over year in the United States.
Despite the absence of purchasing incentives, two-thirds of electric vehicles sold in China in 2024 were less expensive than conventional vehicles; however, in many other nations, the price difference between electric and conventional vehicles remained significant.
In the first three months of this year, electric vehicle sales rose by 35 per cent year-on-year.
It said that with continued growth, total electric vehicle sales are expected to exceed 20 million this year.
“EVs remain consistently cheaper to operate across many markets, based on current energy market prices.
“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,” the report said.
However, Global economic growth, trade development, and industrial policies may affect the outlook for the electric vehicle sector, but sales are being supported by electric vehicle prices becoming more affordable.
“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,” said IEA Executive Director Fatih Birol.
“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,” he added.
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