More than 1 in every 4 cars sold is expected to be electric : IEA report 2025

The worldwide electric vehicle (EV) sales are set to cross the 20 million milestone in 2025, with one in every four cars sold expected to be electric, the International Energy Agency's (IEA) report Global EV Outlook reads. 

The annual report released on Wednesday also highlighted that global sales of electric cars have continued to set records as electric models become cheaper, even in the face of current economic challenges that have put strain on the auto industry. In 2024, sales surpassed 17 million worldwide, placing EVs' market share above 20% for the first time, as previously predicted by the IEA. Moreover, sales of electric vehicles increased 35% as compared to the same period in 2025. Sales for the first quarter have already set new records in all major markets.

The report revealed that China has retained its top position as the EV market leader, with sales of 11 million electric vehicles, accounting for half of the country’s total automobile sales. Meanwhile, the USA has shown a 10% year-on-year increase in EV sales, making one in every ten cars sold electric.

Although the report has not mentioned India particularly, it has mentioned that the total electric car sales in the Asia and Latin America regions have surged by more than 60% in the previous year. However, according to a report by JMK Research, India has sold more than two million EVs in FY25, marking a 15.6 per cent jump from 1.75 million sales in FY2024.

In Europe, sales remain stagnant at 20% as the government’s market support policies and other subsidy schemes have become weaker, the IEA report said. 

IEA Executive Director Fatih Birol said, “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,” the IEA website reads. 

Citing Birol, the report added that “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.”

Furthermore, the report claims that imported cars account for about one-fifth of global sales of electric vehicles. In 2024, China, which produces over 70% of the world's electric vehicles, exported around 1.25 million of them to other nations. Due to these Chinese imports in the emerging economies, the cost of electric cars has decreased significantly.

A particular emphasis on electric trucks and their ownership costs is also included in the report. The report says that the sales of electric trucks rose by around 80% globally last year, making up nearly 2% of all truck sales. Some heavy-duty electric trucks in China are more cost-competitive than their diesel counterparts, with the electric versions' significantly reduced operating costs compensating for their higher purchase prices. This helped to promote the growth brought about by an increase in EV sales in China.