The Rapid Growth of the Global EV Market and Its Impact

In 2024, global EV sales exceeded 16 million units, marking growth of over 25% year-on-year

In 2024, global EV sales (including PHEVs) exceeded 16 million units, marking an increase of more than 25% compared to the previous year. The increase of about 3.4 million units from 2023 to 2024 surpasses the total of approximately 2.9 million units sold in 2020. Among these, China led the way in 2024, selling over 11 million units and maintaining its leadership among the major markets.

On the other hand, Europe experienced stagnating growth, which became one of the factors slowing the overall global increase in EV sales. The are two main reasons behind this.

• Several European countries reduced or ended their subsidy programs

• CO2 emission targets remained unchanged from 2023

In the United States, EV sales in 2024 increased by 130,000 units compared to the previous year, but this growth was only about 33% of the increase seen in 2023, when sales had risen by 400,000 units year-on-year.

The key growth to watch in 2024 lies in markets outside China, Europe, and America. These regions are projected to see a record increase of approximately 45%, rising from around 180,000 units to roughly 260,000 units in that year.

From 2020 to 2024, EV sales increased approximately 5.7 times, and this rapid growth has significantly impacted the global passenger car fleet.

By the end of 2024, the number of EVs in operation worldwide reached about 54 million units, accounting for roughly 4% of the total passenger car fleet. This is more than three times the number of EVs on the road in 2021.

Notably, the widespread adoption of EVs has displaced more than 1 million barrels of oil consumption per day. However, EV penetration rates vary significantly by region. For example, in China, around 1 in every 10 vehicles on the road is electric, whereas in Europe, the ratio is approximately 1 in every 20 vehicles.

Source: Created by Aakel Inc. using the latest IEA data Note: Revision from provisional to confirmed figures

In 2024, around 50% of vehicle sales in China were EVs, accounting for about 70% of all EVs sold globally

In 2024, EV sales in China increased by approximately 40% year-on-year, further boosting global EV sales. In 2021, China accounted for about 50% of global EV sales, but by 2024, that share had expanded to approximately 70%. Since July 2024, monthly EV sales in China have exceeded those of gasoline and other fuel vehicles, pushing the annual EV share close to 50%. The year 2024 also marked the fourth consecutive year in which China’s EV sales share grew by 10 percentage points year-on-year, a major milestone for the country.

A key factor behind this notable growth is the increasing price competitiveness of EVs, making them a more attractive option compared to traditional gasoline vehicles. In addition, a vehicle trade-in subsidy scheme was introduced in April 2024, further boosting the EV market. As part of a broader economic stimulus package, the scheme applies to both EVs and gasoline vehicles, although the level of financial support differs between the two.

• A subsidy of 20,000 yuan is provided when trading in a used vehicle (gasoline or EV) for a new EV

• A subsidy of 15,000 yuan is provided when trading in a used vehicle (gasoline or EV) for a new gasoline vehicle

In 2024, about 60% of the 6.6 million applicants purchased an EV, meaning that over 33.3% of new EV sales in China benefited from this scheme.

Recently, PHEV sales in China have been growing faster than BEV sales. Excluding range extenders (EREVs, which are powered only by an electric motor while the engine is used solely for electricity generation), the share of PHEVs rose from around 20% in 2020 to about 43% in 2024. At the same time, EREV share also increased more than fourfold since 2020, surpassing 10% in 2024.

As a result, the share of BEVs in total EV sales in China dropped from about 80% in 2020 to below 60% in 2024.
Source: Global EV Outlook 2025

Source: Created by Aakel Inc.

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