More than 40% 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% in the past year. This is perhaps because, in the US, EVs cost 30% 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.
According to American research and shopping website CarGurus, the average list price of a new EV in the US (excluding direct-to-consumer brands like Tesla and Rivian) is approximately $63,985, compared to $47,627 for an internal combustion engine vehicle, and $48,449 for a hybrid. That price gap is larger here than in markets like China or the EU.
Cheaper EVs are coming
Antuan Goodwin, EV writer at CNET, believes the average price of EVs in the US will drop as more EVs are manufactured.
“Automakers that I’ve spoken to list economy of scale as the factor with the largest potential to move the needle of EV pricing,” Goodwin said. “In China, EV adoption has greatly outpaced that of the US. They simply sell more, which has pushed prices down. As EV adoption picks up speed, I believe that we’ll see price drop here as well.”
Goodwin added that cheaper EVs are also entering the American marketplace.
“Up until recently, there haven’t been very many true ‘entry-level’ EVs with barebone specs that bring prices down,” Goodwin said. “It’s been all bells and whistles or nothing at all. Prices should come down as the current crop of vehicles matures and more affordable models — such as the Volvo EX30 or Chevrolet Equinox — with more reasonably equipped trim levels begin to sell in greater volumes.”
Charging infrastructure is an issue
Kevin Roberts, director of economic and market intelligence at CarGurus, said that EV charging infrastructure has also slowed EV sales in the US.
There “is a lack of fast and reliable charging options,” Roberts said. “This becomes especially challenging for those in rural and suburban regions that don’t offer charging networks that are as readily available for those in more urban areas.
“The US will need significant upgrades to both charging networks and the broader electric grid to support large-scale EV adoption,” Roberts added. “While the number of charging stations is increasing, coverage remains uneven — especially for fast chargers and in rural areas. We may also need to consider alternative solutions like battery swapping or mobile charging in the future. And beyond chargers, the grid itself will need to evolve to handle increased load, which could require major investment and policy coordination.”
Roberts said that gap in pricing between EVs and internal combustion engine vehicles will narrow as battery costs decline and competition increases. That narrowing could be stymied, however, with Trump administration tariffs, uncertainty around the future of clean vehicle tax credits, shifting manufacturer priorities around EVs and supply chain challenges.
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% 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% increase from the previous time period in 2024. Although Tesla sales dipped 9%, 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 by 80% in 2024, with EV truck sales doubling in China, driven by operating costs that are much lower compared to diesel-powered trucks.
