- The Impact of Heatwaves on Urban Infrastructure - September 17, 2025
- Understanding the Function of Earth’s Magnetosphere - September 15, 2025
- Analyzing the Growth of Electric Vehicle Adoption - September 14, 2025
Global Electric Vehicle Sales Reach Historic Heights
The electric vehicle revolution is picking up speed like never before. Electric car sales are projected to have reached approximately 17 million worldwide in 2024, with estimates suggesting growth of more than 25%. This staggering growth represents a massive shift in how we think about transportation. Just the additional 3.5 million cars sold in 2024 compared to 2023 outnumber total electric car sales in the whole of 2020.
What’s truly fascinating is how this growth compares to just a few years ago. This is more than six times higher than in 2018, just 5 years earlier. The momentum seems unstoppable as we witness this technological transformation unfold before our eyes. In 2025, sales of electric cars are expected to surpass 20 million, accounting for over a quarter of cars sold worldwide.
China Dominates the Electric Vehicle Market
China maintained its lead among major markets, with electric car sales estimated to have exceeded 11 million – more than were sold worldwide just 2 years earlier. The Chinese market is absolutely crushing it when it comes to electric vehicle adoption. China dominates the global EV market, with over half of vehicles sold there now electric.
This dominance isn’t just about numbers; it’s reshaping the entire automotive landscape. It came mostly in China, which sold 11 million EVs and plug-in hybrids. That represents a 40% increase from the prior year, accounting for nearly two-thirds of all worldwide sales. Chinese manufacturers are also expanding globally, with companies like BYD challenging Tesla’s long-held leadership position. Globally, Tesla has long been the leader in sales of fully electric cars, but Chinese automaker BYD is on the verge of taking that title. And BYD additionally sells nearly as many plug-in hybrids as fully electric cars; Tesla only sells fully electric vehicles.
Europe Faces Mixed Results Despite Strong Infrastructure
Europe’s electric vehicle story is more complicated than China’s explosive growth. About one in five new cars sold on the European market was electric in 2024, maintaining the sales share of the previous year. However, the continent experienced some challenges that slowed momentum. Europe came in second with 3 million, or 18% of new EVs, but sales there declined 3% from the previous year as some government incentives expired.
The policy landscape played a huge role in these mixed results. The electric sales share increased in 2024 in 14 out of 27 EU member states, while it either stalled or decreased in the rest, including in several larger markets, such as Germany and France, largely as a result of subsidies being phased out or reduced. In Germany, subsidies ceased at the end of 2023, while France has progressively reduced its subsidy over the years. Despite these setbacks, Europe still maintains impressive charging infrastructure, with Europe’s public charging infrastructure exceeded the mark of 1 million charge points in 2024, which corresponds to a growth of 35%.
United States Shows Steady but Slower Growth
The American electric vehicle market tells a story of consistent progress, even if it’s not as dramatic as what we see elsewhere. In 2024, electric car sales in the United States are projected to rise by 20% compared to the previous year, translating to almost half a million more sales, relative to 2023. While this represents solid growth, it’s notably slower than the explosive rates seen in previous years.
Although the United States has passed critical adoption tipping points, it only saw 10 percent year-on-year growth in 2024 – in stark contrast to the 40 percent seen in 2023. The country is at a critical juncture where The United States passed 1 percent adoption in 2017, 5 percent in 2022, and 10 percent in 2023. Looking ahead, Cox Automotive predicts that the EV and plug-in hybrid share of new American car sales will rise modestly from 9% in 2024 to 10% in 2025, with standard hybrids accounting for another 15% of the market.
Emerging Markets Experience Dramatic Breakthroughs
Some of the most exciting developments are happening in countries that weren’t traditional automotive powerhouses. In the rest of the world, EV sales grew rapidly to 1.3 million, 27% higher than in 2023. These emerging markets are showing that electric vehicle adoption isn’t just for wealthy nations.
Countries like Indonesia and Malaysia are seeing remarkable growth rates. In Indonesia, electric car sales tripled in 2024 while the conventional market contracted by 20%, leading to an electric sales share of over 7%. Meanwhile, In Malaysia, electric car sales more than doubled in 2024 and the sales share increased from less than 2% in 2023 to nearly 4% in 2024. These numbers show how rapidly the global landscape is changing as electric vehicles become accessible to more diverse markets.
Battery Costs Plummet Creating Market Opportunities
One of the biggest game-changers driving electric vehicle adoption is the dramatic drop in battery costs. The average price of battery packs fell 20% in 2024 to $115 per kilowatt-hour (kWh), a significant step toward achieving price parity between electric vehicles and internal combustion engine (ICE) cars. This represents the steepest decline in seven years, creating new possibilities for mass adoption.
The outlook for battery costs looks even more promising. Global average battery prices declined from $153 per kilowatt-hour (kWh) in 2022 to $149 in 2023, and they’re projected by Goldman Sachs Research to fall to $111 by the close of this year. Our researchers forecast that average battery prices could fall towards $80/kWh by 2026, amounting to a drop of almost 50% from 2023, a level at which battery electric vehicles would achieve ownership cost parity with gasoline-fueled cars in the US on an unsubsidized basis. Goldman Sachs Research expects a nearly 40% decline in battery prices between 2023 and 2025, and for EVs to reach breakthrough levels in terms of cost parity (without subsidies) with internal combustion engine cars in some markets next year.
Manufacturing Capacity Expansion Accelerates Globally
The automotive industry is making massive investments to support electric vehicle growth. Worldwide, reported investment announcements from 2022 and 2023 alone exceed USD 275 billion in EVs and USD 195 billion in batteries, with around USD 190 billion of the total already committed. These investments demonstrate unprecedented confidence in the electric future.
In the United States specifically, battery manufacturing capacity is expanding rapidly. By 2027, U.S. battery manufacturing facilities will be capable of producing 1,099 GWh of EV battery capacity, which is enough capacity to power 12.3 million new cars, 80% of the vehicles sold in the U.S. in 2023. U.S. EV manufacturing facilities will be capable of producing approximately 5.5 million new light-, medium-, and heavy-duty electric vehicles each year in 2027, which represents approximately 35 percent of all new passenger cars, light duty trucks and SUVs sold in the U.S. in 2023. Meanwhile, Chinese companies account for over half the sales to date, and they could become even more prominent given that BYD plans to start operating EV production facilities in Thailand in 2024, with an annual production capacity of 150 000 vehicles for an investment of just under USD 500 million. VinFast is investing around USD 2 billion and targets an annual production of 150 000 vehicles in the United States by 2025.
Charging Infrastructure Grows to Support Mass Adoption
The expansion of charging infrastructure is keeping pace with vehicle adoption, addressing one of the biggest concerns potential buyers have. Europe’s public charging infrastructure exceeded the mark of 1 million charge points in 2024, which corresponds to a growth of 35%. The Netherlands is in the lead with 180,000 public charging points, followed by Germany (160,000) and France (155,000).
The quality of charging infrastructure is improving just as rapidly as quantity. Ultra-fast chargers (150 kW+) grew 50% to 71.000 chargers and now make up nearly 10% of all public fast chargers. About 20% of ultra-fast chargers in the EU already offer charging capacities of 350 kW and more, even though only a few vehicles can fully use this power. In the UK, Looking at rapid and ultra-rapid charging points alone, thanks to Zapmap, the UK network has expanded from just 3,871 devices in 2020 to an impressive 14,471 by the end of 2024. Each year has seen accelerating growth: 1,261 rapid chargers were installed in 2021, rising to 3,411 in 2023, and 4,353 in 2024.
Government Policies Shape Adoption Patterns
Policy decisions are playing a crucial role in determining how quickly different regions adopt electric vehicles. It’s no secret that governmental and local policies play a huge role in accelerating EV adoption. Major markets (China, the US, Europe) that are currently seeing rapidly growing EV sales began their EV journeys by introducing policies like vehicle purchase incentives. However, since 2022, EV-related government subsidies have been on the decline.
The impact of policy changes is becoming increasingly visible in sales data. In Europe, Germany saw the most significant changes. Their EUR 4,500 per-vehicle subsidy was phased out completely by the end of 2023, which affected the country’s EV uptake in 2024. However, some countries are finding creative alternatives. On the other hand, the country introduced tax benefits for companies purchasing EVs for their corporate fleets. A similar tax benefit was introduced in the UK, where company cars represented 60% of all car sales in 2024. Meanwhile, Newly adopted and proposed GHG standards and zero-emission vehicle (ZEV) mandates will ensure increased adoption of EVs in the future. In 2023, the United Kingdom passed the Vehicle Emissions Trading Schemes Order 2023, which mandates certain sales shares of zero-emission cars and vans, setting a target for annual ZEV sales shares for cars to increase from 22% in 2024 to 80% in 2030.
Electric Vehicle Model Availability Explodes
Consumers now have more electric vehicle options than ever before, addressing the complaint that there weren’t enough choices in the early days of EV adoption. Regarding the availability of EV models, 785 electric car models were available for consumers in 2024, an increase of 15% compared to the previous year. It’s predicted that 1,000 models will be available by 2026. This expansion covers everything from affordable commuter cars to luxury SUVs and pickup trucks.
However, affordability remains a challenge in some markets. Around 25 new all-electric car models are expected in 2024, but only 5 of them are expected below USD 50 000, and none under the USD 30 000 mark. Considering all the electric models expected to be available in 2024, about 75% are priced above USD 50 000, and fewer than 10 under USD 40 000, even after taking into account the USD 7 500 tax credit under the IRA for eligible cars as of February 2024. The industry is working to address this gap as battery costs continue falling and manufacturing scales up.
Used Electric Vehicle Market Provides Affordable Entry Point
The growth of the used electric vehicle market is creating opportunities for buyers who couldn’t afford new EVs. The second-hand electric vehicle market is booming, offering affordable opportunities for drivers to go electric. The UK used electric car sales hit a record high in the summer of 2024, with 53,423 EVs sold – a staggering 57% year-on-year increase, outpacing the 4.3% growth in the overall used car market. As companies and lease providers release more EVs, the used EV market share has risen from 1.8% in the summer of 2023 to 2.7% a year later.
The characteristics of the used EV market are quite different from traditional used cars. While used gas cars shift towards older stock, 72% of used EV listings are from the past five years, and 45% are from 2023 or later. These are long range, modern EVs with great technology and many years left on their battery warranties. This means buyers can access relatively new technology at more affordable prices. The Recurrent Price Index, which tracks the overall used EV market pricing, has fallen 32% year-over-year to an average of $27,800 — a level last seen in early 2021.
Range Anxiety Becomes Less of a Concern
One of the biggest psychological barriers to electric vehicle adoption is steadily disappearing as technology improves. With the average new electric car now capable of travelling 236 miles on a single charge, and rapid chargers growing from 3,871 in 2020 to 14,471 by the end of 2024, range anxiety is being replaced by charging confidence. The combination of salary sacrifice schemes and government incentives has revolutionised electric vehicle affordability in Britain.
Consumer behavior is also evolving as people become more comfortable with electric vehicles. The growing popularity of ultra-rapid charging demonstrates this evolution – Zapmap data shows that drivers are increasingly confident using rapid chargers, with ultra-rapid charging sessions growing from 29% of all charging in 2022 to 45% in 2023. This shift is evidenced by changing charging preferences, with drivers showing more sophisticated charging behaviours. While home charging remains the most economical option at 3p per mile, drivers are confidently mixing charging methods – from workplace charging to public rapid charging at 18p per mile – depending on their needs.
Future Outlook Points to Accelerated Growth
The trajectory for electric vehicle adoption looks increasingly promising as multiple factors align to drive continued growth. Early projections for 2025 suggest continued strong growth in global electric car sales. The momentum shows no signs of slowing down as technological improvements, cost reductions, and infrastructure development continue.
Industry projections suggest we’re approaching a tipping point where electric vehicles become the dominant choice. Global sales of electric vehicles continue to rise and are set to represent one in four cars sold this year. Reuters estimated that automakers have announced investments that sum to $1.2 trillion globally through 2030 to produce BEVs and their batteries, and this spending can be expected to increase economies of scale, reduce battery prices, and increase BEV production to more than half of total vehicle production. With such massive investments and accelerating technological progress, the electric vehicle revolution appears unstoppable, fundamentally reshaping how we think about transportation for generations to come.
The electric vehicle adoption story we’re witnessing today will likely be remembered as one of the most significant technological and environmental transformations of our time. What started as a niche market for early adopters has evolved into a global phenomenon that’s reshaping entire industries and creating new possibilities for sustainable transportation.
