The International Energy Agency (IEA) has reported that electric vehicle (EV) sales are expected to continue growing, despite uncertainty surrounding trade and industrial policy triggered by US tariffs. According to the IEA, EV sales should account for one in four cars sold this year, with growth accelerating in many emerging economies.
IEA Executive Director Fatih Birol stated, “Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally.” He added, “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’s expected that more than two in five cars sold will be electric as EVs become increasingly affordable.
Key Statistics:
- Global EV Sales: Over 17 million EVs were sold last year, with sales increasing by more than 3.5 million vehicles from 2023.
- China’s Dominance: China accounted for almost two-thirds of global EV sales last year and more than 70% of worldwide production.
- Price Competitiveness: In China, two-thirds of all electric cars sold last year were priced lower than their conventional equivalents, even without purchase incentives.
- Regional Variations:
- Europe: EV sales stagnated at around one in five, partly due to reduced government purchase subsidies in France and Germany.
- United States: EV sales growth slowed to 10%, with their share in overall sales rising to just over 10%.
- Emerging Economies: Sales boomed, increasing by over 60% year-on-year, driven by policy incentives and affordable electric cars from Chinese automakers.
The IEA notes that high tariffs would impact not only EV sales but also conventional cars, with a slowing economy pulling down demand for cars overall. However, the Chinese market shows potential to resist a slowdown thanks to political support and competitive EV prices.