Electric Passenger Cars Market - Databook 2025 to 2034

The global electric passenger cars market size accounted for USD 381.77 billion in 2024 and is predicted to touch around USD 6,661.66 billion by 2034, growing at a CAGR of 33.1% from 2025 to 2034.

Highlights of the Electric Passenger Cars Market

• APAC registered its dominance over the global market in 2024.
• North America will gain a significant share of the market over the studied period of 2025 to 2034.
• By product, the battery electric vehicle segment accounted for a considerable share of the market in 2024.
• By product, the Plug-In Hybrid Electric Vehicle (PHEV) segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By vehicle type, the SUVs segment registered its dominance over the market in 2024.
• By vehicle type, the hatchbacks segment is anticipated to grow with the highest CAGR in the market during the studied years.

Industry Valuation and Growth Rate Projection

The electric passenger cars market deals with electric car that utilizes electric motors, which are backed by batteries, chiefly to transport passengers. The core types in the passenger electric vehicle market are electric vehicle battery, hybrid electric vehicles, and plug-in hybrid electric vehicles. In addition to normal charging, these cars can be charged with high power as well.

Consumers in the APAC region specifically are opting for electric vehicles more than ever. Viewing from a global lens, China accounted for more than 50% of total global EV sales in the year 2023. The governments in countries such as India are initiating schemes, like the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SMEC) is set to sponsor the engineering of electric cars in India. 

Electric Passenger Cars Market: Stats and Figures

• According to S&P Global Mobility, in 2025, the sales quantities in the US can be 16.2 million units
• In accordance with BloombergNEF, just about 20% of electric passenger vehicles were sold on a large scale.
• In 2023, China's automotive trade formed roughly 26.1 million passenger cars. As per the recent survey from the International Energy Agency, above 250,000 electric vehicles (EVs) were sold every single week in 2023 internationally.

Industry Leader Announcements

• Unsoo Kim, Managing Director of Hyundai Motor India Limited:

Reflecting on Hyundai’s progress concerning electric cars, Kim said, "We are incredibly proud to see the Hyundai IONIQ 5 create history by achieving the Guinness World Record for the highest altitude change by an electric car. At Hyundai, we are dedicated to pushing boundaries and setting new benchmarks in e-mobility, and this record further reinforces our vision of 'Progress for Humanity."

How AI Has Benefitted the Market

• AI has taken the electric passenger cars market to a new high as it helps with the swift and accurate identification of the roads and helps the drivers make decisions while driving accordingly. For instance, Volkswagen Group is developing its own ADAS system in China for its contemporary generation EVs.
• ADAS: Alongside AI, this technology uses sensors and cameras to curtail the risk of road accidents.
• Reduced energy consumption: AI can predict the road inclinations and choose a safe and sound route while utilizing less battery energy.
• Daily commute: The fixation of routes can be done through AI, making the transportation of passengers by electric cars easy.
• Traffic: AI can figure out a less congested road to take using its algorithms, and traveling takes less time for both drivers and commuters.

Recent Developments:

• The BMW Group and the Toyota Motor Corporation are merging their pioneering vigor and high-tech proficiencies to put forward Fuel Cell Electric Vehicle (FCEV) opportunities for passenger cars. Both companies have a common goal of progressing the hydrogen economy and prospering together.
• At a meeting in Wolfsburg, Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand, exhibited plans for the brand’s outlook. The company employees also had a first look at the Volkswagen brand’s future entry-level electric model, priced at approximately €20,000. 

Geographical Insights 

In 2024, APAC, particularly China, held an extensive share of the global electric passenger cars market. The European market keeps experiencing intensive growth, and the North American market is likely to keep its eyes on ahead in the forecast period.

North America

North America is expected to register the highest market share over the coming years in the electric passenger cars industry. The government incentives taken up in the region are expected to give a lift to the market growth.

Government policies like tax credits, rebates, and grants for consumers purchasing EVs are leading to rising acceptance of electric vehicles. As stated by the U.S. Department of Energy, these incentives have furthered a significant increase in EV sales, with more than 600,000 electric vehicles traded in 2021.

Europe

Europe saw outstanding growth in the electric passenger cars market in 2024, as people in the region are all up for buying electric cars, and the carbon emissions generated are comparatively lower.

As per McKinsey’s latest research and analysis, the consumers of Europe are highly attracted to electric vehicles, or EVs. The sales of these cars are escalating by an average of exceeding 50 percent from the year 2020 to 2023.

China and APAC

APAC was the largest region in the market, with China taking the lead in 2024, owing to the increasing consumption of plug-in hybrid electric vehicles (PHEVs).

The sale of EVs in China hit the highest point at close to 50% share of the total vehicle sales in 2024, attributed to factors like the robust collaboration of inland automakers with battery manufacturers.

Competitive Landscape 

The electric passenger cars market is highly competitive, with leading electric vehicle (EV) companies such as BYD Company Limited, Ford Motor Company, Mercedes-Benz, Tesla, General Motors Company, Bayerische Motoren Werke AG, SAIC-GM-Wuling, and Hyundai holding the largest part of the market share. Developing passenger electric car corporations also play a decisive role in encouraging a burgeoning competitive landscape.

The market is dominated by quite a lot of EV companies, well-known for their momentous involvement in creating technologically advanced passenger cars. Based on current data, the top three leading companies are:

• Company Name: Ford Motor Company
• Year of Incorporation: 1903 
• Headquarters: Michigan, United States

The total revenue of Ford Motor Company stood at $184,992,000 in 2024.

• Company Name: BYD Company Limited
• Year of Incorporation: 1995
• Headquarters: Guangdong, China

The gross profit of BYD Company Limited bounced from $111,916,409 in 2023 to $151,055,839 in 2024.

• Company Name: Mercedes-Benz
• Year of Incorporation: 1926 
• Headquarters: Stuttgart, Germany

The gross profit of Mercedes-Benz was $28,576,000 in 2024.