- The IEA reports that global car sales are shifting rapidly toward electric and hybrid vehicles, which accounted for 45% of sales in 2024.
- China leads EV production and exports due to lower costs and scale, though other regions could catch up with efficiency gains.
The International Energy Agency (IEA) released a report outlining significant changes in global car production and sales as demand for electric and hybrid vehicles rises.
The report, “What Next for the Global Car Industry?”, shows that global car sales reached nearly 80 million in 2024, recovering from the pandemic slump. Electric and hybrid vehicles drove the majority of the growth, accounting for approximately 45% of total sales. Sales of conventional internal combustion engine (ICE) cars have fallen 30% since 2017. New entrants to the EV market captured a growing share of the market.
China and other emerging economies now account for over half of global car sales, up from 20% in 2000. China produces 40% of the world’s cars and surpassed the European Union as the largest car exporter in 2024. Approximately 70% of EVs sold worldwide originate from China, while Europe and North America each account for around 15% of the global capacity.
IEA Executive Director Fatih Birol said, “The global car industry employs more than 10 million people directly and supports millions more jobs worldwide. Three significant structural shifts are underway: changes in production geography, regional sales growth, and consumer technology choices. Our report guides governments and industry to navigate these changes.”
The report shows EV production costs in China remain lower than in advanced economies due to large-scale manufacturing, vertical integration, and lower battery costs. China’s average battery cell prices are over 30% lower than those in Europe and more than 20% lower than those in the U.S. The IEA notes that other regions can close the cost gap with investment, scaled production, and automation.
The report recommends automakers pursue diverse strategies to stay competitive, balancing declining ICE markets with rising EV demand and multiple regional trends.