Global electric vehicle sales rise due to lower prices but Tesla sales went backwards

EV sales exceeded 17 million globally in 2024 but the outlook varies widely between a boom in China, tepid growth in Europe and price anxiety in the US sees Tesla lose ground.

Global electric vehicle sales have continued to soar due to lower prices for buyers but US growth rates were downgraded as Tesla sales went backwards while Europe stagnated as subsidy schemes waned.

Global sales of EVs are on track to surpass 20 million in 2025, a 17 per cent rise from last year and accounting for over a quarter of cars sold worldwide according to the International Energy Agency.

Sales exceeded 17 million globally in 2024, putting EVs’ share of the global car market above 20 per cent for the first time while car purchases are up 35 per cent in the first three months of 2025 on the same period last year.

In China, EVs accounted for half of all car deals in 2024 with 11 million sold, equivalent to the total number sold worldwide in 2022.

Still, growth rates are choppy in different markets as buyers weigh up cost, range anxiety and subsidy schemes before making a decision.

Australians purchased 100,000 EVs in 2024, marking a 10 per cent market share of new vehicles sold, according to the Electric Vehicle Council. It estimates there are now over 300,000 EVs on Australian roads.

US outlook for EVs

While EV sales rose by 10 per cent in the US in 2024, the IEA slashed its growth outlook with EVs now expected to account for 20 per cent of all cars sold by 2030 which is less than half the share estimated by the IEA in last year’s report.

SUVs account for three-quarters of total car sales in the US, but only one in five electric SUVs were sold at a lower price than a conventional car.

Elon Musk’s Tesla saw its market share fall by 10 per cent year-on-year despite the high profile car maker slashing prices in an attempt to maintain its market lead, the IEA said.

Only two battery electric models were priced below $US30,000 ($46,278), compared to more than 50 conventional cars, with EVs in the US 30 per cent more expensive across the board.

Chinese EVs

China bucked that trend, however, with two-thirds of all electric cars sold last year were priced lower than their conventional equivalents, even without subsidy incentives.

Europe was also a drag on growth with sales stagnating as subsidy schemes and policies waned, though the market share of electric cars remained around 20 per cent.

“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.

Tariff impact on EV prices

The IEA warned a recent surge in trade policies and tariffs may affect the price and resulting sales of EVs along with batteries, given China was responsible for nearly 80 per cent per cent of global EV battery cell production in 2024.

“A global shift towards higher tariffs could put upward pressure on battery prices, counteracting some of the significant battery price declines that have occurred since 2015. For example, a 25 per cent tariff would override the 20 per cent average battery price declines from the past year,” the IEA said.

Some of that concern may be tempered after the US-China trade deal. President Trump’s tariffs on Chinese goods sinks from 145 per cent to 30 per cent while Xi’s tariff wall on American goods tumbles from 125 per cent to 10 per cent in a 90 day reprieve.

Tesla v BYD

China’s BYD overtook Tesla as the world’s top-selling EV maker this year, accounting for 16 per cent of the global electric vehicle market, according to Counterpoint. This compares with Tesla’s 14 per cent.

BYD is the first brand to sell an EV for less than $30,000 with its stripped-back Dolphin model and plans to flood the European and South American markets with hundreds of thousands of cars

EVs are approaching 10 per cent of new car sales in Australia with the market closely watching to see if Anthony Albanese will mandate EV road users to contribute to road maintenance costs via a usage-based charge.