Global electric vehicle sales hit record highs in 2025, with one out of every four cars sold worldwide now powered by electricity, according to the authors of the newly released report. While growth remained strong in Europe and emerging markets like India, the United States saw a slight dip in sales due to the removal of government tax incentives.
“Electric car sales increased by more than 20% year-on-year in 2025, rising to 21 million units, with one in four cars sold being electric.” Additionally, the study notes that “Europe as a whole overtook China as the fastest growing major market for electric cars.”
This means that despite some local challenges, the transition away from gas-powered cars is accelerating globally. In places like China, electric vehicles are now so popular that they account for more than half of all new car sales, while in Europe, demand is growing even faster than in other regions. Even in developing nations, lower prices and more available models are encouraging a massive jump in sales as people switch to cleaner transportation.
The report “Global Energy Review 2026” was published by the International Energy Agency in France in April 2026. Prepared by the IEA’s Energy Modelling Office under the direction of Laura Cozzi, the comprehensive study was led by authors Alex Martinos and Thomas Spencer.
