By 2030, 2 of the five cars sold worldwide will be electric vehicles. American driver, you have some catch up
According to a recent report by the International Energy Agency, 40% of all cars sold worldwide will be electric vehicles, almost twice the market share due to the increased affordability of electric vehicles. However, U.S. electric vehicle sales have grown less than global growth, up 10% over the past year. This may be because in the United States, EVS is on average 30% higher than traditional vehicles, the IEA said.
The IEA report shows that despite economic uncertainty in the U.S. and global markets, electric vehicle sales will continue to increase as their prices become more competitive with conventional vehicles.
According to an IEA report, two-thirds of all electric vehicles sold in China last year are priced below their gas-powered equivalents.
According to Cargurus, the average price for new electric vehicles in the U.S. (excluding direct-to-consumer brands like Tesla and Rivian) is about $63,985, internal combustion engine cars are $47,627, while hybrids are $48,449. The price gap here is larger than markets such as China or the EU.
Cheap electric cars are coming soon
CNET's EV writer Antuan Goodwin believes that the average price of electric vehicles in the United States will drop as more electric vehicles are built.
“I have the greatest potential for mobile EV pricing needles based on economies of scale,” Goodwin said. “In China, EV adoption is significantly higher than the U.S. products. They just sell more, which makes prices lower. With the speed of EV adoption, I’m sure we’ll see prices drop here too.”
Cheap electric cars are also entering the U.S. market, Goodwin added.
“Until recently, there weren’t many real ‘entry-level’ electric cars, and quasi-rib specs would lower the price,” Goodwin said. “That’s all the bells and whistles, or at all. Prices should drop because of the current vehicles mature and more affordable models (such as the Volvo EX30 or Chevrolet Equinox), the equipment’s more reasonable trim levels start to be sold in larger quantities.”
Charging infrastructure is a problem
Kevin Roberts, director of economic and market intelligence at Cagrus, said EV charging infrastructure has also slowed down U.S. electric vehicle sales.
“There is a lack of fast and reliable charging options,” Roberts said. “This has become particularly challenging for people in rural and suburban areas, which do not provide a charging network that is easily accessible to people in more urban areas.
“The U.S. will need a major upgrade to the charging network and the wider grid to support the adoption of large-scale electric vehicles,” Roberts added. “Although the number of charging stations is increasing, coverage remains unbalanced – especially for fast chargers and rural areas. We may also need to consider future alternative solutions, such as future battery swap or mobile charging. In addition to chargers, the grid itself needs to develop to cope with increased loads, which may require substantial investment and policy coordination.”
Roberts said the price gap between electric vehicles and internal combustion engine vehicles will narrow as battery costs fall and competition increases. But the uncertainty about the future of cleaning vehicle tax credits due to the Trump administration’s tariffs, which shifted the priorities of manufacturers around electric vehicles and supply chain challenges, could hinder this narrowness.
According to various reports, in addition to the purchase price, the operating price of electric vehicles is also cheaper. Consumer reports say electric vehicle drivers spend 60% less to power cars, a University of Michigan report found that the average cost of powering electric vehicles is $485 per year, while gasoline-powered cars cost $1,117. The U.S. Department of Energy also noted that “the average EV at a given energy is 4.4 times faster than the average gasoline volume.”
CNET reported last month that from January to March, 300,000 electric vehicles were sold in the United States, a 10% increase from the previous period in 2024. Despite Tesla's sales down 9%, General Motors has sales of over 30,000 electric vehicles, and the new Acura, Audi, Audi, Chevrolet, Chevrolet, Honda and Honda and Porsche Models have also helped our EV Sales.
One of the most compelling aspects of the IEA report is the surge in electric vehicle truck sales. Global sales grew by 80% in 2024, with sales of electric vehicle trucks doubled in China compared to diesel-powered trucks, and operating costs were much lower.
