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Yahoo
02-06-2025
- Automotive
- Yahoo
Assisted by increasing affordability, global EV adoption continues to rise
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Despite market disruptions in the global automotive industry — including U.S. tariffs — EV sales remain on an upward trajectory. That's according to a May report from the International Energy Agency, the global energy forum of 32 industrialized countries, including the United States. The IEA's annual Global EV Outlook predicts that more than a quarter of vehicles sold around the world in 2025 will be electric. In 2024, according to the report, more than 17 million EVs were sold worldwide, comprising more than 20% of all new vehicle sales. The number of sales grew by 25% compared to 2023. And sales only continue to grow: During the first quarter of 2025, global EV sales rose by 35% versus the same period in 2024. 'Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally,' IEA Executive Director Fatih Birol said in a statement, adding that EV sales are continuing to set new records. Birol also said that the share of EVs sold is expected to more than double within the next five years, reaching more than 40% of global car sales, thanks in large part to the growing affordability of EVs. Last year, the average worldwide price of an EV generally fell, according to the report. But pricing varied by country. In China, two-thirds of EVs sold were cheaper than similar gas-powered vehicles — even without discounts and other promotions. At the same time, the report noted that the limited share of affordable EV models in the U.S. has hurt EV take-up. On average, the price of an EV in the U.S. is 30% higher than a similar gas-powered car. In addition, more than 75% of cars sold in the U.S. are SUVs, but only about 20% of electric SUVs are cheaper than their gas-powered counterparts. The low prices of China's OEMs have rapidly accelerated EV adoption in China, where more than half of vehicles sold last year were EVs. But EV production in China is also driving increased EV sales around the world — China EV sales were actually responsible for nearly two-thirds of all EV purchases worldwide, per the report. The report also said that EV growth is accelerating in emerging economies, which include countries such as Brazil, India, Indonesia, Mexico and Thailand. In these regions, EV sales increased by more than 60% in 2024 alone. The increase is largely due to EV affordability, as the report noted the cheapest EVs in Brazil, India, Indonesia, Mexico and Thailand were made by China-based OEMs and were often the least expensive vehicles on the market — cheaper even than gas-powered vehicles, per the report. While EV sales increased in the U.S. in 2024, sales growth declined compared to 2023. Still, the EV market in the U.S. continues to expand; 24 new models were introduced in 2024, bringing the total number of new EV models brought to market since 2020 to 110, the report said. Recommended Reading ComEd offering $100M in rebates to drive EV growth in Illinois Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Mayor
19-05-2025
- Automotive
- Business Mayor
More than one in four cars sold worldwide this year set to be electric
The International Energy Agency (IEA) has, in its annual Global EV Outlook, forecast that despite significant uncertainties, electric passenger cars' market share is on course to exceed 40% by 2030 as they become increasingly affordable in more markets. Following another year of robust growth in CY2024, global sales of electric cars are on track to surpass 20 million in CY2025, accounting for over a quarter of cars sold worldwide. The report shows that despite recent economic headwinds that have put pressure on the auto sector, global sales of electric cars have continued to break records as electric models become increasingly affordable. Sales exceeded 17 million globally in 2024, putting EVs' share of the global car market above 20% for the first time, as forecasted by the IEA previously. And in the first three months of 2025, electric car sales were up 35% year-on-year. All major markets, and many others, saw new records for first-quarter sales. Emerging markets in Asia and LatAm new centres of growth China maintains its position as the EV market leader, with electric cars accounting for almost half of all car sales in 2024. The number of electric cars sold in China last year (more than 11 million) is equivalent to the total sold worldwide in 2022. Emerging and developing markets in Asia and Latin America have also become new centres of growth, with total electric car sales across these regions surging by more than 60% in 2024 and the sales share almost doubled from 2.5% to 4%. This rapid growth has been strengthened by policy incentives. Emerging and developing economies in Asia (excluding China) saw a large increase in electric car sales, reaching almost 400,000 in 2024, up over 40% from 2023. In India, demand for electric passenger cars has risen, particularly in the past year. In CY2024, 99,378 new electric cars were sold in the country , which constitutes YoY growth of 20% (CY2023: 82,563 units). Sales of electric cars, SUVs and MPVs in India rose 21% YoY in CY2024 to a record 99,738 units. This best-ever annual sales record is set to be surpassed this year because in the first three months of CY2025, a total of 34,568 electric cars, SUVs and MPVs have being sold, up 34% YoY (January-March 2024: 25,777 units). The Indian electric car market is currently witnessing a shakeout what with EV leader Tata Motors, which has the largest EV portfolio, under pressure from JSW MG Motor India. SUV major Mahindra & Mahindra has also mounted a challenge with the recent launched on two new electric SUVs (BE 6 and XEV 9e). While Hyundai Motor India, the second-ranked passenger car maker, has launched the Creta Electric, the zero-emission avatar of the country's best-selling midsize SUV, ICE market leader Maruti Suzuki will be launching its first EV later this year, as will Toyota Kirloskar Motor as part of the global Suzuki-Toyota alliance. Thailand remained the largest EV market in Southeast Asia, despite a 10% drop in electric car sales. This decline was outweighed by an even steeper 26% drop in conventional car sales, largely due to stricter lending criteria, meaning the electric sales share rose to 13% in 2024, up from 11% the previous year. Within the region, Indonesia and Vietnam also stood out, respectively tripling and nearly doubling their sales numbers and reaching sales shares comparable to countries such as Spain or Canada. In many Southeast Asian countries, BEVs are the most popular electric car type, with over 90% of all electric car sales being fully electric. In Latin America, sales volumes and penetration rates doubled in many countries, with electric cars reaching a market share of 4% in 2024. Brazil towered over other countries in the region with nearly 125,000 electric car sales, more than twice the number of 2023 sales, and the electric sales share doubled to 6.5%. Costa Rica, Uruguay and Colombia also achieved impressive sales shares of around 15%, 13% and 7.5%, respectively. These increases are in large part the result of government incentives such as tax exemptions, reduced registration fees, a relaxation of traffic restrictions for EVs, and relatively high fossil fuel prices. In Africa, electric car sales more than doubled to reach nearly 11,000 in 2024. Sales shares remained low, at under 1%, though there was growth in several countries, such as Morocco and Egypt, where new electric car sales increased to more than 2 000. EV sales grow in the US, stagnate in Europe In the United States, electric car sales grew by about 10% year-on-year, reaching more than one in 10 cars sold. Europe saw sales stagnate as subsidy schemes and other supportive policies waned, though the market share of electric cars remained around 20%. '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,' said IEA Executive Director Fatih Birol. 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 is set to be more than two in five cars as EVs become increasingly affordable.' Uncertainties over global economic growth and the evolution of trade and industrial policies could affect the outlook. But sales of EVs are being supported by their increasing affordability, the report finds. Purchase gap with conventional cars still persists On a global level, the average price of a battery electric car fell in 2024 amid growing competition and declining battery costs. In China, two-thirds of all electric cars sold last year were priced lower than their conventional equivalents, even without purchase incentives. However, the purchase price gap with conventional cars persisted in many other markets. The average battery electric car price in Germany, for example, remained 20% higher than that of its conventional counterpart. In the United States, battery electric cars were still 30% more expensive. EVs remain consistently cheaper to operate across many markets, based on current energy market prices. Even if oil prices were to fall as low as $40 per barrel, running an electric car in Europe via home charging would still cost about half as much as running a conventional car at today's residential electricity prices. According to the report, almost one-fifth of electric car sales worldwide are of imported vehicles. China, which accounts for more than 70% of global production, shipped nearly 1.25 million electric cars to other countries in 2024. This included to many emerging economies, where electric car prices fell considerably on the back of Chinese imports. ALSO READ: India's EV industry sales jump 27% in CY2024 but miss 2-million mark by a whisker
Yahoo
15-05-2025
- Automotive
- Yahoo
Could U.S. tax credit on electric vehicles go away?
President Donald Trump has made it clear he's not a fan of incentivizing the U.S. electric vehicle market, signing off on an executive order to eliminate Biden-era EV production targets within hours after taking the oath of office in January. And the tax portion of the GOP's new federal budget proposal released earlier this week calls for the phase out of an EV purchase incentive, put in place by President Barack Obama, that would eliminate a $7,500 tax credit on qualified, new EVs and up to $4,000 on used electric vehicles, a credit limited to a portion of the purchase price. But while the Republican-controlled White House and Congress move away from efforts to boost EV adoption in the U.S., electric vehicle sales are on the rise globally with some estimates projecting the purchase rate for battery-powered cars and trucks to reach 40% of overall sales by 2030. On Wednesday, EV research firm Rho Motion released new data showing global electric vehicle sales hit an annual growth rate of 29% in April and are up an average 29% so far in 2025 compared to the same period last year. Global EV sales volumes hit a robust 5.6 million vehicles in the first four months of the year despite rising international trade tariffs and levies that went into effect last month, including a new 25% fee on import vehicles coming into the U.S. 'Ongoing tariff negotiations are dominating talk in the electric vehicle industry but quietly, domestic manufacturers in China and the EU continue to perform well and grow market share,' Rho Motion data manager Charles Lester said in the report. 'The EU is certainly the success story for EV sales in 2025 so far, with emissions targets lighting a fire under the industry to accelerate the switch to electric, they have grown the market by a quarter in the first third of the year. In China, that year-on-year sales increase is even greater at 35%, spurred on by the vehicle trade-in scheme.' While EV sales across much of the world are growing at a brisk clip, electric vehicle sales in the U.S., while still on the upswing, are currently moving up at a much more moderate rate. Electric vehicle sales from January to April 2025 versus January to April 2024, year-to-date by percentage, per the Rho Motion report: Global: 5.6 million, +29% China: 3.3 million, +35% Europe: 1.2 million, +25% North America: 600,000, +5% Rest of World: 500,000, +37% Another analysis released Wednesday, the International Energy Agency's 'Global EV Outlook', notes that 'despite recent economic headwinds that have put pressure on the auto sector, global sales of electric cars have continued to break records as electric models become increasingly affordable.' The global sales volume of electric vehicles exceeded 17 million vehicles in 2024, putting EVs' share of the world car market above 20% for the first time, according to the IEA report. China continues to lead the world in EV adoption with electric cars accounting for almost half of all car sales in the country in 2024. The number of electric cars sold in China last year, more than 11 million, is equivalent to the total sold worldwide in 2022. The report notes emerging markets in Asia and Latin America have also become new centers of growth, with total electric car sales across these regions surging by more than 60% in 2024. In the U.S., electric car sales grew by about 10% year-on-year in 2024, reaching more than 1 in 10 cars sold, according to the report. Europe Union countries saw sales stagnate as subsidy programs and other supportive policies waned, though the market share of electric cars remained around 20%. '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,' said IEA executive director Fatih Birol. '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.' According to a report published by Edmunds earlier this year, Utah ranked #17 in the nation on a basis of EV market share, with light-duty electric vehicles accounting for 9.5% of total vehicles purchased in the third quarter of 2024.
Yahoo
15-05-2025
- Automotive
- Yahoo
1 in 4 new cars sold in 2025 will be electric, new report says, and China is the undisputed EV leader
More than one in four cars sold worldwide in 2025 will be electric, according to the latest projections from the International Energy Agency, and will reach 40 per cent of all new cars by 2030. Among major markets, the undisputed leader is China, whose new EV sales increased 40 per cent year over year in 2024. About half of all new cars sold in the country last year were electric, accounting for 11 million out of the 17 million new EVs sold worldwide. Meanwhile, sales growth was flat in Europe and just 10 per cent in the U.S. Behind the numbers, the IEA's annual Global EV Outlook shows how China's decades of investment have paid off, while also making electric cars more affordable for buyers in developing countries around the world. In Europe and the U.S., EV sales faced challenges because of significantly more expensive cars and scaled-back EV rebates, but remain on a long-term upward trajectory. "We're not going back, no matter what some people might say or think. We are moving in the transition to EVs," said Daniel Breton, president of Electric Mobility Canada, an industry association. Relatively affordable Chinese EVs also drove up sales by 60 per cent in emerging economies in Asia, Latin America and Africa. In Canada, EVs grew their market share, rising to 17 per cent of all new cars sold in 2024, up from 13 per cent in 2023. Last year, 252,000 fully electric or plug-in hybrid electric cars were sold in Canada. But EV manufacturing remains small here, at just 25,000 cars annually. China's success in EVs has been decades in the making, according to James Jackson, research fellow at the University of Manchester who has an upcoming book on the political economy of the EV transition. And to understand China's reasoning for its heavy investment in the industry, he says, one must take into account the symbolic value of domestic car manufacturing, in addition to the economic benefits. "If you go and buy a BYD, you are then testament to superior Chinese manufacturing, and you will therefore by extension be symbolizing Chinese development, that it is not this import-dependent, predominantly agriculture-based economy," he said, referring to the popular Chinese EV brand. "They are the ascendant power now." Because the car sector is so tied into a country's self-image as an industrial power, Jackson said, Beijing went all in on EVs, entering an industry that was otherwise dominated by companies in Europe, North America and Japan. By the early 2000s, China's central and state governments were pouring subsidies into EV companies, many of which failed initially. But this also led to heavy competition between the startups, Jackson says, driving down EV prices and eventually creating a company like BYD, the world's largest EV maker, which is busy expanding abroad even as it faces steep tariffs in the U.S. and Canada. In 2024, two-thirds of the new EVs sold in China were actually cheaper than their equivalent gas-powered cars, according to the report. Part of BYD's — and China's — success is the vertically integrated business model. The country also dominates in making the batteries, sourcing their minerals and financing for car buyers. According to the IEA report, China accounts for 70 per cent of global EV production. BYD even has its own ships for exporting its cars. The result: Today, BYD has electric cars priced as low as $11,000. The report warned of the impacts of the U.S. President Donald Trump's trade and tariff threats on the EV market. In response, Canada has slapped 25 per cent tariffs on certain vehicles and parts imported from the U.S. But Electric Mobility Canada has put out a new report showing that most electric cars are not subject to these counter-tariffs, as most EVs sold in Canada come from Europe and South Korea, not the U.S. WATCH | How Canada's tariffs on Chinese EVs could impact competition: The association recommends that Canada should maintain its EV Availability Standard, which eventually requires companies to sell only electric cars in the country by 2035. Hongyu Xiao, a transportation analyst at the Pembina Institute, a Canadian clean energy think-tank, says widespread adoption of EVs is crucial for Canada to meet its climate goals. Transportation is the second-largest emitting sector in the country, after oil and gas. "The climate benefits of the EV are in fact even more pronounced [in Canada] because we are not burning coal or a lot of gas to power the EV. We are using a lot of nuclear, hydro, renewable energy," he said. Apart from sales targets, Xiao said, the government should restore its EV incentive program, which provided up to $5,000 toward an EV purchase. Ottawa ended that program earlier this year, although some provinces have continued their rebates. On the manufacturing front, Xiao suggested that Canada has an advantage in terms of critical minerals for batteries, and could attract carmakers as the U.S. pulls back. But the government would need to pave the way for companies by designing regulations making it easier for them to invest in Canada But ultimately, the EV industry — and carmaking as a whole — will likely be largely led by China into the future, Jackson says. Legacy car companies will have to figure out where they fit into China's supply chain, Jackson said, or explore niches in the car market where companies like BYD don't dominate. "There will still be Volkswagen and Ford and Peugeot in the next 20, 30, maybe 50 I think they'll be operating at a completely different scale in terms of how much cars they're producing."
Yahoo
14-05-2025
- Automotive
- Yahoo
Global EV sales to exceed 20 million in 2025
Electric vehicle (EV) market share is expected to surpass 40% by 2030, with global sales projected to exceed 20 million by 2025, capturing over a quarter of the car market, according to the International Energy Agency (IEA). Despite economic challenges, the EV sector continues to experience record growth, with affordability driving increased adoption. The IEA's annual Global EV Outlook indicates that electric cars are becoming more affordable, leading to robust sales growth despite economic pressures on the automotive sector. In 2024, global sales of electric vehicles exceeded 17 million, with EVs accounting for more than 20% of the global car market for the first time. The first quarter of 2025 saw a 35% year-on-year increase in electric car sales. China remains the leader in the EV market, with electric cars making up almost half of all car sales in 2024. Additionally, emerging markets in Asia and Latin America have seen a surge in electric car sales, increasing by over 60% in 2024. In the US, electric car sales grew by approximately 10% year-on-year, reaching more than one in ten cars sold. Europe's sales stagnated due to diminishing subsidies and supportive policies, yet the market share of electric cars stayed around 20%. Globally, the average price of a battery electric car decreased in 2024 amid competitive pressures and falling battery costs. In China, two-thirds of electric cars sold were priced below their conventional counterparts, even without purchase incentives. Furthermore, EVs have maintained lower operational costs across many markets, with home charging in Europe remaining about half as expensive as running a conventional car, even with potential oil price drops. The IEA report highlights that nearly one-fifth of electric car sales worldwide consist of imported vehicles. China, responsible for over 70% of global production, exported nearly 1.25 million electric cars in 2024, including to emerging economies where prices dropped significantly due to Chinese imports. The report also focuses on electric trucks, noting an 80% increase in sales last year, accounting for nearly 2% of all truck sales globally. 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. 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.' "Global EV sales to exceed 20 million in 2025 – IEA report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
