More than 40 percent of all cars sold worldwide will be electric vehicles by 2030 — nearly double the market share last year — thanks to increasing affordability of EVs, according to a recent report by the International Energy Agency. But the growth rate of EV sales in the United States is less than the global increase, with an increase of 10 percent in the past year. This is perhaps because, in the US, EVs cost 30 percent more than conventional vehicles on average, according to the IEA. 

The IEA report suggests that, despite economic uncertainties in the US and in global markets, EV sales will continue to surge as their price becomes more and more competitive with conventional vehicles.

Two-thirds of all electric cars sold in China last year were priced lower than their gas-powered equivalents, according to the IEA report.

Beyond the purchase price, EVs are cheaper to operate than conventional gas-powered vehicles, according to various reports. Consumer Reports said that EV drivers spend 60 percent less to power their cars, and a University of Michigan report found that on average the cost of powering an EV was $485 annually, compared to $1,117 for gas-powered vehicles. The US Department of Energy also stated that “the average EV travels 4.4 times farther on a given amount of energy than the average gasoline vehicle.”

More than 300,000 EVs were sold in the US from January to March, CNET reported last month, which is a 10 percent increase from the previous time period in 2024. Although Tesla sales dipped 9 percent, General Motors boasted EV sales of more than 30,000, and new Acura, Audi, Chevrolet, Honda and Porsche models also helped drive up EV sales in the US.

One of the more striking aspects of the IEA report is the even bigger surge in EV truck sales. Global sales increased 80 percent in 2024, with EV truck sales doubling in China, driven by operating costs that are much lower compared to diesel-powered trucks.