Electric vehicles (EVs) have entered a pivotal phase. The latest data show global EV sales hitting record numbers, accelerated by falling battery costs, stronger government incentives, and growing consumer awareness of climate change. In 2024, EVs accounted for over 20% of all new vehicles sold globally, with more than 17 million units sold — a 25% increase from the previous year.
Key Drivers Behind the Surge
Affordability Improvements
Battery prices have gradually declined. Because of this, in many regions EVs are coming closer to price parity with traditional petrol/diesel cars. Policymakers and manufacturers are rolling out incentives, rebates, and subsidies to make EVs more accessible.
Policy & Regulation Push
Emission reduction goals, stricter vehicle emission standards, and climate targets are pushing governments to adopt more aggressive EV mandates. In places like the EU, regulatory pressure and mandates for manufacturers are strong pushes toward electrification.
Growth in Emerging Markets
While China still dominates global EV sales, regions in Southeast Asia, Latin America, and others are showing rapid growth rates. These markets are seeing high percentage growth (though from lower base numbers), driven by favorable policy and rising urban pollution concerns.
Challenges & Barriers
Infrastructure Limitations: Many areas still lag behind in charging station networks, power grid readiness, and fast-charging support. Without sufficient charging infrastructure, EV adoption may stall.
Upfront Costs & Supply Chains: While total cost of ownership is improving, initial purchase price remains high in many countries. Also, the supply chain for batteries (lithium, cobalt, nickel) remains subject to geopolitical risk and resource constraints.Policy Variation & Incentive Uncertainty: Some countries are scaling back subsidies; changes in political leadership can shift EV support. Consistency in policy is needed for long-term planning by manufacturers and consumers.
Grid & Environmental Impacts: Increased EV use raises electricity demand. If power comes from non-renewable sources, environmental benefits are reduced. Battery disposal and recycling also present environmental challenges.
Outlook: What’s Coming in the Next Few Years
EVs are projected to make up over 40% of new car sales globally by around 2030 if current trends continue. Regions with strong regulatory support and consumer incentives will likely lead.
More affordable, lower-cost EV models will enter markets previously priced out, helping adoption in emerging economies.Investment in charging infrastructure, battery recycling, and grid upgrades will become more urgent and central to national climate strategies.
Electric trucks, two-wheelers, and non-personal vehicles (public transport, delivery fleets) will see increased adoption, further reducing emissions from transport sectors.