Global EV Sales To Surpass 20 MILLION in 2025, New Report Says

Nearly one in every four new cars sold in 2025 will be electric. That’s the key takeaway from the International Energy Agency’s (IEA) latest Global EV Outlook, which shows the EV revolution is not only alive—it’s accelerating.

Despite a shaky global economy and industry uncertainty, EVs are on track to smash records again this year, with over 20 million sales forecast globally. That’s a 35% jump from the same time last year and follows 2024’s milestone: over 17 million EVs sold worldwide, accounting for 20% of all new car sales.

By 2030? EVs could claim 40% of the global car market.

▶️MORE: BYD Overtakes Tesla in Global Sales as Chinese EV Giant Eyes Further Expansion

Who’s Leading the Charge?

No surprise—China is in the driver’s seat.

• EVs accounted for nearly 50% of all new cars sold in China in 2024
• 11+ million EVs sold in China alone—as many as the world sold in all of 2022
• China’s dominance is boosted by fierce domestic competition and a wave of affordable EV models, many of which are now being exported worldwide

Other markets are joining the race, including:

▶️MORE: Australia’s EV Market Set or Massive Growth in 2025

Australia: Still Catching Up, But Gaining Speed

Australia is trailing global leaders, but the momentum is building. EVs made up close to 10% of all new car sales in 2024. According to the Electric Vehicle Council (EVC), that figure could rise to between 15–19% by 2026.

While early 2025 has seen a slump in deliveries mainly due to slower Tesla imports. The overall trend still points upward, particularly as new, more affordable Chinese EVs flood the market.

Why the World Is Going Electric

The IEA’s report highlights several key forces pushing EV adoption:

1. Affordability Is Improving

In many countries, EVs now match or even undercut internal combustion engine (ICE) cars on price without subsidies.

• In China, 2/3 of EVs sold in 2024 were cheaper than equivalent petrol/diesel cars.
• In Thailand, Chinese EV exports helped bring full price parity with ICE vehicles.
• In Germany, however, EVs still cost 20% more than ICE cars.

Australia has also benefited from falling prices, thanks to brands like BYD and MG entering the fray with budget-friendly models.

▶️MORE: BYD Beats Tesla in EV Sales For Second Quarter in A Row

2. EVs Are Cheaper to Run

Even if you pay more upfront, you’ll likely spend less in the long run. The IEA found that:

Even if oil prices fell to US$40 a barrel, home-charged EVs in Europe would still cost half as much to operate as conventional cars.

Electric Trucks: The Silent Boom

While the focus often stays on passenger vehicles, electric trucks are gaining traction, especially in China.

• Global sales jumped 80% in 2024
• Trucks now make up nearly 2% of global EV sales
• Growth was led by China, where electric trucks are already price-competitive with diesel rigs

What Could Slow Things Down?

The IEA outlines three key risk factors:

1. Global Trade Tensions

With EV supply chains heavily reliant on international cooperation, geopolitical flare-ups could disrupt production and delivery.

2. Tech Innovation

Breakthroughs in batteries, charging speed, and vehicle design are crucial—not just for function, but for consumer confidence. Range anxiety still looms large.

3. Critical Mineral Access

The EV boom depends on minerals like lithium, nickel, and cobalt—industries heavily concentrated in China. As IEA Executive Director Fatih Birol put it:

“If you want to see more diversification in the manufacture of electric cars, there is a need for other countries, other markets, to be significant players in the game.”

Australia is well-positioned here, with vast reserves of lithium and rare earths, but needs to move up the value chain if it wants a bigger slice of the EV manufacturing pie.