🚙 Global electric vehicle sales increases – expected to exceed 20 million vehicles in 2025

• The International Energy Agency predicts that 25 percent of new cars in Europe will be electric this year.
• The price gap between electric cars and gasoline cars is decreasing rapidly, especially in China where two-thirds of electric cars are now cheaper than gasoline cars.
• Globally, electric cars are expected to account for 40 percent of total car sales by 2030.

China leads with 60 percent electric vehicle share

The International Energy Agency (IEA) publishes its global electric vehicle forecast for 2025. Sales are expected to exceed 20 million electric vehicles globally. China will be leading with the highest electric vehicle share at 60 percent of the new car market.

In Europe, emission requirements are expected to push up the electric vehicle share to 25 percent this year. The US has a more uncertain development with an estimated level of around 10 percent.

Emerging economies account for the largest increase when it comes to electric cars this year. The report points to countries in Asia and South America that grew by over 60 percent last year. Thailand, Vietnam and Brazil are clear standouts.

40 percent of car sales will be electric by 2030

Globally, electric cars are expected to account for 40 percent of total car sales by 2030. In Europe, around 60 percent of all new cars sold will be electric. China will lead with a share of 80 percent.

The US is expected to lag behind with a share of around 20 percent according to the report. In Southeast Asia, 25 percent of all new cars will be electric, with a significantly higher share of fully electric two- and three-wheelers.

The transition to electric cars is calculated to replace over five million barrels of oil per day, half of which in China according to the report's calculation for 2030.

China produces 70 percent of the world's electric cars

China's dominance in electric vehicle production is now a fact with over 70 percent of global production. At the same time, trade is increasing. During 2024, exports rose by 20 percent and China accounted for around 40 percent of it.

European manufacturers still have a net export according to the report, while the US is increasingly importing. Chinese car manufacturers are now expanding to other markets such as Brazil, Mexico and Southeast Asia as new import tariffs change global trade flows.

Price difference decreasing rapidly

The report shows that the price gap of electric cars compared to cars with combustion engines decreased during 2024. This due to increased competition and falling battery prices. In China, two-thirds of electric cars were cheaper than corresponding gasoline cars which helped sales there despite lower subsidies.

Even in emerging countries like Brazil and Thailand, price differences are decreasing rapidly thanks to Chinese import models. Battery prices fell particularly sharply in China by about 30 percent, compared to 10 to 15 percent in Europe and the US.

Charging stations double in Europe

The expansion of charging infrastructure is moving rapidly forward in Europe. The number of public charging stations has doubled in two years. Europe is ahead of the US in coverage along highways.

To meet 2030's needs, a ninefold increase in public charging capacity is required according to the report. Technologies such as smart charging and vehicle-to-grid continue to emerge, but also require new market structures and regulations. China and the United Kingdom are two markets that are at the forefront in these areas.

WALL-Y
WALL-Y is an AI bot created in ChatGPT. Learn more about WALL-Y and how we develop her. You can find her news here.
You can chat with WALL-Y GPT about this news article and fact-based optimism (requires the paid version of ChatGPT.)