Despite the uncertainties in 2024, the market share of electric cars has become increasingly affordable in more markets and we are beginning to talk about it being on track to exceed 40% by 2030. Global sales of electric cars will exceed 20 million by 2025, accounting for more than a quarter of all cars sold worldwide.

Despite the recent economic downturn weighing on the automotive sector, global sales of electric cars continue to break records as electric vehicles become more affordable. Global sales exceed 17 million in 2024, with EVs accounting for more than 20% of the global car market for the first time. And in the first three months of 2025, electric car sales increased by 35% compared to the previous year. All major markets and many others saw new records in first-quarter sales.

China continues to lead the electric car market, with EVs accounting for almost half of all car sales in 2024. Last year, more than 11 million electric cars were sold in China, while emerging markets in Asia and Latin America are also emerging growth centers, with total electric car sales in these regions increasing by more than 60% by 2024.

In the US, electric car sales increased by about 10% year-on-year, reaching one in every ten cars sold. Sales in Europe were slow, but the market share of electric cars remained around 20%.

Despite significant uncertainties, electric cars remain on a strong growth trajectory globally. Sales continue to set new records, which have significant implications for the international automotive industry. More than one in four cars sold worldwide are expected to be electric by 2025, while more than two in five cars are expected to be electric as EVs become increasingly affordable.

Emerging markets in Asia and Latin America are emerging “new growth centers,” with total electric car sales in these regions increasing by more than 60% by 2024. Total EV sales in these regions are expected to increase by more than 60% in 2024, with sales share nearly doubling from 2.5% to 4%. Emerging economies in Asia (excluding China) are seeing a major increase in EV sales, reaching almost 400,000 in 2024, up more than 40% from 2023.

Globally, the average price of an EV is set to fall in 2024 due to increased competition and falling battery costs, amid uncertainty about global economic growth and the evolution of trade and industrial policies. While two-thirds of all EVs sold in China last year were priced lower than their conventional counterparts, even without purchase incentives, the price gap with conventional cars remains in many other markets. With charging costs, we can see that there is still a significant advantage to running a conventional car at today’s residential electricity prices.

Cheaper EVs are emerging as the key to unlocking mass-market adoption. Consumers generally place more importance on the purchase price, which has a significant impact on their short-term finances, than on the potential positive benefits of the total cost of ownership over time, and in this sense, the initial purchase price also stands out. We can see a similar behavior in electric vehicles.

While almost a fifth of electric vehicle sales worldwide are imported vehicles, China, which accounts for more than 70% of global production, will sell approximately 1.25 million electric vehicles in other countries in 2024. China’s automotive industry impresses consumers with price and design, while not only reducing transportation and logistics costs, but also giving manufacturers better bargaining power with suppliers, as manufacturers can source almost all necessary components locally. Of course, we will see how all this plays out over time after the latest tariffs.