According to a new report from the International Energy Agency, multiple cars have become electricity in four cars sold worldwide this year, marking a key milestone in shifting from fossil fuel transport.
Global EV Outlook 2025The estimate, released Wednesday, estimates that 20 million electric vehicles will be sold in 2025, from 17.5 million last year, despite slower growth in some Western markets.
China continues to control, accounting for more than half of global EV sales. In 2024 alone, 11 million EVs were sold in China. This was led to competitive pricing and strong domestic manufacturing, selling almost half of all cars sold domestically.
Emerging markets in Asia and Latin America also saw a sharp rise in adoption of electric vehicles, with sales rising 60% last year.
However, this trend is not uniform elsewhere. In Europe, growth is stagnating amid subsidies rollbacks and weak new emissions targets.
In the US, despite a 10% increase in sales, the IEA is downgrading its long-term EV forecast following a series of policy reversals and slower than expected capturing.
The growing EV fleet is already having a measurable impact on fossil fuel demand. According to the IEA, EVS reduced oil demand in 2024 with an estimated 1.3 million barrels per day.
Still, the agency warns that current trends are not sufficient to meet global climate targets. To meet the net zero target, EV adoption must accelerate, especially in developing countries where heavy transport and infrastructure gaps continue.
“Our data shows that despite important uncertainties, electric vehicles remain on a strong global growth trajectory. Sales have had a major impact on the international automotive industry and continue to set new records.”
“We expect more than one in four units worldwide will be sold on electricity this year, with growth accelerated in many emerging economies. By the end of the decade, as EVs become more and more affordable, they are set to be more than two in five.”
The report estimates that current EV growth will help avoid 2 Gigatonne emissions by 2035, even after taking into account the emissions from generation to generation.
The main reason for the continued rise in EV sales is the decline in battery prices. The IEA reports that battery pack costs fell by more than 25% in 2024 compared to the previous year, making EVs more accessible in many markets.
But despite these benefits, EVs cost nearly 30% more than gasoline and diesel vehicles in many regions, including the US, creating a barrier to low- and middle-income consumers.
The IEA report is because several governments are rethinking their support for clean transport. The US has watered down subsidies and emission standards for electric vehicles, but the EU’s previously ambitious 2035 deadline has been phased out, with diesel cars facing pressure from automakers and right-wing politicians.
“Policy support remains important,” the report noted, warning that inconsistent regulations and trade barriers “can jeopardize progress just as much as the EV market expands.”
According to the IEA, EVs are now “solidly established” in the global automotive market, but the pace and shape of the transition are increasingly determined by political will.
If the country continues to betray clean transport targets, agencies warn that the world is locked to higher emissions and risks slowing progress in air pollution and oil dependence.
