- Global electric vehicles sales are up nearly 30% so far this year.
- 2024 EV sales hit 1 in 5 vehicles sold and could grow to 1 in 4 this year.
- A new federal budget proposal would end the long-running EV tax credit.
President Donald Trump has made it clear he’s not a fan of incentivizing the U.S. electric vehicle market, signing off on an executive order to eliminate Biden-era EV production targets within hours after taking the oath of office in January.
And the tax portion of the GOP’s new federal budget proposal released earlier this week calls for the phase out of an EV purchase incentive, put in place by President Barack Obama, that would eliminate a $7,500 tax credit on qualified, new EVs and up to $4,000 on used electric vehicles, a credit limited to a portion of the purchase price.
But while the Republican-controlled White House and Congress move away from efforts to boost EV adoption in the U.S., electric vehicle sales are on the rise globally with some estimates projecting the purchase rate for battery-powered cars and trucks to reach 40% of overall sales by 2030.
EV sales on the rise
On Wednesday, EV research firm Rho Motion released new data showing global electric vehicle sales hit an annual growth rate of 29% in April and are up an average 29% so far in 2025 compared to the same period last year.
Global EV sales volumes hit a robust 5.6 million vehicles in the first four months of the year despite rising international trade tariffs and levies that went into effect last month, including a new 25% fee on import vehicles coming into the U.S.
“Ongoing tariff negotiations are dominating talk in the electric vehicle industry but quietly, domestic manufacturers in China and the EU continue to perform well and grow market share,” Rho Motion data manager Charles Lester said in the report. “The EU is certainly the success story for EV sales in 2025 so far, with emissions targets lighting a fire under the industry to accelerate the switch to electric, they have grown the market by a quarter in the first third of the year. In China, that year-on-year sales increase is even greater at 35%, spurred on by the vehicle trade-in scheme.”
While EV sales across much of the world are growing at a brisk clip, electric vehicle sales in the U.S., while still on the upswing, are currently moving up at a much more moderate rate.
Electric vehicle sales from January to April 2025 versus January to April 2024, year-to-date by percentage, per the Rho Motion report:
- Global: 5.6 million, +29%
- China: 3.3 million, +35%
- Europe: 1.2 million, +25%
- North America: 600,000, +5%
- Rest of World: 500,000, +37%
EV sales break 1 in 5 mark
Another analysis released Wednesday, the International Energy Agency’s “Global EV Outlook”, notes that “despite recent economic headwinds that have put pressure on the auto sector, global sales of electric cars have continued to break records as electric models become increasingly affordable.”
The global sales volume of electric vehicles exceeded 17 million vehicles in 2024, putting EVs’ share of the world car market above 20% for the first time, according to the IEA report.
China continues to lead the world in EV adoption with electric cars accounting for almost half of all car sales in the country in 2024. The number of electric cars sold in China last year, more than 11 million, is equivalent to the total sold worldwide in 2022. The report notes emerging markets in Asia and Latin America have also become new centers of growth, with total electric car sales across these regions surging by more than 60% in 2024.
In the U.S., electric car sales grew by about 10% year-on-year in 2024, reaching more than 1 in 10 cars sold, according to the report. Europe Union countries saw sales stagnate as subsidy programs and other supportive policies waned, though the market share of electric cars remained around 20%.
“Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally. Sales continue to set new records, with major implications for the international auto industry,” said IEA executive director Fatih Birol. “This year, we expect more than one in four cars sold worldwide to be electric, with growth accelerating in many emerging economies. By the end of this decade, it is set to be more than two in five cars as EVs become increasingly affordable.”
According to a report published by Edmunds earlier this year, Utah ranked #17 in the nation on a basis of EV market share, with light-duty electric vehicles accounting for 9.5% of total vehicles purchased in the third quarter of 2024.