Electric vehicles (EVs) continued to reshape the global auto industry in 2024, with significant growth across key markets despite economic and political challenges. China, Europe, and the U.S. led the way in adoption, while uncertainty about subsidies looms as a potential hurdle in 2025, especially with the incoming Trump administration in the United States.
Global EV Market Growth
The global EV market, including pure battery EVs and plug-in hybrids, grew by 25% year-over-year through November, according to consultancy Rho Motion. By the end of the year, an estimated 15.2 million EVs will have been sold worldwide. The International Energy Agency projects that EVs will make up one in five cars sold globally in 2024.
China remains the dominant force in the market, accounting for the majority of EV sales, while markets like the U.S. and parts of Europe also saw significant increases.
Regional Highlights
- China: EVs hit 50% of new car sales in July, including both battery EVs and plug-in hybrids. Chinese automakers like BYD are gaining traction globally with affordable models.
- Mexico: EV sales grew fivefold compared to last year, with BYD playing a major role.
- Turkey: EV sales surged 50% year-to-date, driven by Tesla’s market entry and strong sales from local automaker Togg.
- United Kingdom: EV sales rose by 17% year-to-date, outperforming major European markets like France and Germany, which saw declines.
- Norway: Maintains its leadership in EV adoption, with 90% of new car sales being electric.
Top-Selling EVs
The Tesla Model Y and Tesla Model 3 were the top-selling electric vehicles both globally and in the U.S.
- Model Y: Launched in 2020, its base version is priced at $45,000.
- Model 3: Introduced in 2017, it starts at $42,000.
Both models have been eligible for a $7,500 tax credit in the U.S., contributing to their popularity.
Tesla’s Changing Market Position
Tesla continues to dominate the EV market, holding a 17% global market share and a 49% U.S. market share as of October. However, its dominance is gradually being challenged as competitors like GM, Ford, and Honda introduce more affordable and varied EV options.
Tesla remains the most valuable automaker globally, with a market capitalization of $1.4 trillion, but its market share is shrinking as the EV landscape diversifies.
The Future of EVs
The growth of EVs highlights their critical role in the transition to clean energy, particularly as road transport accounts for roughly one-sixth of global energy emissions, according to the International Energy Agency.
While EV adoption is accelerating, challenges like the uncertainty around purchase subsidies in 2025 and evolving competition in the market will shape the industry’s trajectory in the coming years.
