In 2024, the global electric car fleet soared to nearly 58 million vehicles, tripling from 2021 and comprising 4% of the world’s passenger cars, displacing over 1 million barrels of oil daily, according to the International Energy Agency (IEA). China‘s dominance, with nearly two-thirds of global electric vehicle (EV) sales, underscores its pivotal role in this shift, while Europe and the U.S. face uneven growth amid policy changes.

China’s Electric Boom Fuels Global Growth

China’s electric car market exploded in 2024, with sales jumping nearly 40% year-on-year, capturing almost half of all car sales in the country. “In 2024, about 6.6 million consumers applied for the incentive, 60% of whom bought an electric car,” the IEA reports, highlighting a trade-in scheme offering $2,750 for new EVs versus $2,050 for conventional cars. This policy, paired with price competitiveness, pushed battery electric vehicle (BEV) sales to grow sevenfold since 2020, despite plug-in hybrid electric vehicles (PHEVs) rising from 15% to nearly 30% of EV sales. Extended-range EVs also surged, exceeding 10% of sales, reflecting diverse consumer preferences.

Global Electric Car Fleet Hits 58 Million In 2024, Led By China’s Surge

Europe’s Stagnation Amid Policy Shifts

Europe’s electric car sales held steady at a 20% market share in 2024, with growth stalling in key markets like Germany and France due to reduced subsidies. Germany ended EV incentives in 2023, while France scaled back its environmental bonus, limiting eligibility. The EU’s CO2 standards, with new targets set for 2025, offered carmakers little incentive to boost EV sales in 2024, per the IEA. However, the UK saw a rise to nearly 30% EV sales share under its Vehicle Emissions Trading Scheme, while Norway hit 88% BEV sales, cutting oil use by 12% since 2021. Denmark’s EV sales share climbed to 56%, adding nearly 100,000 electric cars.

U.S. Market Grows but Slows

In the U.S., electric car sales reached 1.6 million in 2024, a 10% increase from 2023, though growth slowed from 40% the prior year. The market saw 24 new EV models, a 15% increase, boosting competition and reducing Tesla‘s market share from 60% in 2020 to 38%. A revised Clean Vehicle Tax Credit, offering up to $7,500 at purchase, covered about 20 of 110 available models, with leasing provisions expanding eligibility. “In 2024, nearly half of all EVs sold were leased,” notes the IEA, doubling the share from three years ago. Additionally, 27 states provided local incentives, further driving adoption.

Technical and Economic Implications

The global EV surge highlights advancements in battery technology and cost declines, particularly in China, where BEVs rival conventional cars in price. PHEVs and extended-range EVs offer flexibility for consumers hesitant about range limitations, with ranges often exceeding 600 miles for extended-range models. Economically, EVs reduce oil dependency, with Norway’s 12% oil consumption drop as a model. Regulatory shifts, like the EU’s upcoming CO2 standards and Norway’s 2025 tax hike on non-EVs, will likely accelerate electrification. However, subsidy cuts in Europe signal challenges in maintaining momentum without consistent policy support.

Looking Ahead

China’s trade-in incentives and the UK’s trading scheme illustrate how targeted policies can drive EV adoption. As the U.S. expands model availability and leasing options, growth may rebound if incentives persist. Europe’s 2025 regulatory changes could reignite progress, but only if paired with consumer-focused support. With 58 million EVs already on roads, the shift to electric is reshaping global transportation, with China leading the charge.