MYTHBUSTING

1 in 4 New Cars Sold in 2025 Are Electric!

February 19, 2025

EVs are expected to make up 25% of new car sales in 2025.
The U.S. EV market is projected to reach 10% of total car sales in 2025.
Federal incentives like the Inflation Reduction Act make EVs more affordable.

Hold on—did you catch that? By 2025, one in four new cars sold will be electric. Not someday. Not in the distant future. Right now. The EV wave isn’t creeping in—it’s pulling up to the curb and honking.

Just a few years ago, the idea of EVs making up 25% of new car sales might have seemed like science fiction. But according to Cox Automotive’s Kelley Blue Book, 2025 will be a big year, with electrified vehicles expected to make up as much as one in four new car sales.

Electric cars are gaining market share, according to Cox Automotive 2025 Forecast — _{2025 Cox Automotive forecast: steady growth, improved affordability, EV adoption, and rising buyer satisfaction.}

What’s Driving This Change?

Multiple factors are driving the rapid growth of electric vehicle adoption.

Consumer interest in EVs is increasing as more drivers look for environmentally friendly and cost-effective alternatives to gasoline-powered vehicles. The appeal of lower maintenance costs and the convenience of home charging make EVs an attractive option for many buyers.

Government incentives have also played a key role in accelerating EV adoption. The Inflation Reduction Act extends a $7,500 tax credit for new electric vehicle purchases and introduces a $4,000 credit for used EVs. These incentives are designed to make EV ownership more accessible, particularly for low- and middle-income consumers.

Automakers are responding to this demand by expanding their electric vehicle production. Companies such as Hyundai and Kia have started manufacturing EVs in the United States, allowing models like the Hyundai Ioniq 5 and Kia EV9 to qualify for federal tax credits.

By producing vehicles domestically, these manufacturers are lowering costs while expanding choices, offering everything from budget-friendly compacts to spacious SUVs.

EV Sales Surge: 20M+ Expected in 2025

Electric vehicle sales are accelerating at an unprecedented pace. In 2024, a record-breaking 17.1 million EVs were sold globally, according to a report by leading global research house, Rho Motion, reflecting a 25% increase compared to 2023.

Analysts predict this momentum will continue, with global sales of fully electric and plug-in hybrid vehicles expected to grow by at least 17% in 2025, surpassing 20 million units for the first time.

_{17.1 million EV sales in 2024, according to Rho Motion research, a 25 percent increase compared to 2023.}

The United States is following this trend. In 2024, EV sales in the U.S. reached 1.3 million units, marking a 7.3% increase from the previous year. Looking ahead to 2025, projections indicate that EVs will account for 10% of new vehicle sales, while hybrids will make up 15%.

Meanwhile, internal combustion engine (ICE) vehicles are expected to see their market share drop to a record low of 75%, highlighting the growing consumer shift toward electrified transportation.

But Wait, There’s More

This surge isn’t just about numbers; it’s about a fundamental change in how we view transportation. Remember when smartphones were rare and only a few people had them? Now, they’re practically an extension of our hands.

The same thing is happening with EVs. They are no longer just for people focused on the environment. More everyday drivers are choosing them because they are practical and make and cost-effective.

One of the biggest advantages? Lower operating costs. According to Kelley Blue Book, charging a Chevrolet Bolt EV at home costs just $10.73—about the price of two lattes. Edmunds estimates a full charge using a Level 2 home charger costs around $11. That means you can wake up every morning with a “full tank” without breaking the bank.

GM Q3 Results Show Strong Revenue Higher 2024 Forecasts and EV Momentum - GMC Hummer EV SUV Pickup Truck Electrify Expo — _{A GMC Hummer electric pickup truck on display at Electrify Expo.}

Compare that to gas. NerdWallet reports that adding 100 miles of range to an EV costs between $2.80 and $30, depending on the charger. Gasoline? Usually more expensive and subject to price spikes.

Even DC fast charging, which costs between $10 and $30 per session, can still be cheaper than filling up a gas tank, according to Car and Driver.

EVs aren’t just a futuristic trend—they’re a smart financial choice. Lower costs, home charging convenience, and fewer trips to the gas station? No wonder more drivers are making the switch.

What Does This Mean for You?

If you’re considering switching to an electric vehicle, here are some helpful steps to get started:

Learn About Your Options: There are more EV models available now than ever before. Take some time to compare different cars to find one that matches your needs and budget.
Plan for Charging: Think about where you will charge your car. If you have a home, installing a charging station might be a good option. If not, check for public charging stations near your home, work, or regular routes to make charging easier.
Look for Discounts and Rebates: The government offers incentives to help lower the cost of buying an EV. Programs like the Inflation Reduction Act provide tax credits for both new and used electric vehicles, which can help make them more affordable.

The numbers do not lie—electric vehicles are not just gaining ground; they are becoming the new standard. With more options, better incentives, and rapidly improving infrastructure, making the switch is no longer a question of “if” but “when.”

Will you be ahead of the curve or left behind in the rearview mirror?