Electric vehicle (EV) sales accounted for one in five of all vehicles sold globally in 2024, according to the latest report from the International Energy Agency (IEA). The data revealed a record-breaking 17 million EVs were sold over the year, marking a 20% increase from 2023.
China led the global shift with 11 million EVs sold, making up nearly half of its total vehicle sales and reinforcing its status as the largest EV market. The strongest relative growth, however, came from South-East Asia and Latin America, where EV sales surged by 50% year-on-year.
“We know there are economic, trade and technology uncertainties in the world now, and questions about whether sales are going up or down,” said IEA executive director Faith Birol. “Our numbers show that despite many headlines saying EVs were not doing good in terms of sales, our numbers show another record of 17 million EVs, or an increase of 20 per cent compared with the previous year.”
Birol also highlighted rapid uptake in emerging markets such as Vietnam, Thailand, Brazil and Indonesia, despite the lower base.
Australia records moderate gains
In Australia, EV sales rose by 14%, from 98,000 in 2023 to 112,000 in 2024. The strongest growth was seen in plug-in hybrid vehicles, which more than doubled from 11,000 to 21,000. Battery electric vehicle (BEV) sales also increased, albeit more modestly, from 87,000 to 91,000.
The Tesla Model Y and Model 3 remained the country’s top-selling BEVs, followed by the BYD Atto and Seal models. Fuel cell electric vehicles, such as the Toyota Mirai, continue to be a niche segment used primarily for fleet purposes.
Policy-driven momentum in Europe
While China remains the central force in EV sales and manufacturing, the IEA expects European Union (EU) and United Kingdom markets to see a boost in 2025 due to tightening emissions standards. The report projects EVs will make up 25% of vehicle sales across Europe next year.
“These policy pushes are expected to drive up electric car sales in Europe in 2025 to reach a sales share of 25 per cent, despite flexibility given to automakers for meeting the 2025 EU emissions reduction target,” the report said.
Looking ahead, the IEA forecasts EVs will make up 40% of global vehicle sales by 2030, with China potentially reaching 80%, the EU 60%, and the United States lagging at around 20%.
Cost parity and Chinese expansion
Affordability continues to be a key factor in driving EV adoption. The report notes that in Germany and the United States, battery EVs were still 20–30% more expensive than internal combustion engine (ICE) counterparts in 2024. However, in emerging markets like Thailand, the cost difference has disappeared entirely, while Brazil and Mexico saw price gaps narrow significantly.
Chinese automakers played a pivotal role in this trend, particularly in Mexico, where Chinese EV imports comprised 66% of total EV sales. The narrowing price gap in Brazil—from 100% in 2023 to just 25% in 2024—also contributed to growing adoption.
“This concentration is not good news, China is dominating this game big time,” said Birol, referring to China’s control over key mineral processing for EVs such as lithium, cobalt, nickel and graphite. “In terms of energy security, one of our golden rules is diversification, and if want to see more diversification in EVs there is a need for other countries and other companies to be significant players in the game.”
Battery demand and future projections
EV battery demand remains a key driver of the broader battery market, and is expected to continue rising sharply, particularly with growing uptake of electric heavy vehicles. Sales of electric trucks and buses increased by 80% in 2024, mainly in China.
Despite technological advances, the average EV driving range remained steady at around 340 kilometres in 2024. The IEA suggests this may signal that manufacturers are optimising for cost and utility rather than simply extending range.
“As market competition intensifies, the fact that average range has stabilised in the past year could indicate that car makers have found an optimal balance between range performance and vehicle manufacturing costs,” the report said.
In 2025, global EV sales are projected to reach 20 million, further cementing the technology’s transition from niche to mainstream.