In 2023, nearly one in five cars sold worldwide was electric, with China, Europe and the United States accounting for 95% of those sales. In 2025, Europe’s average electric car market share is expected to reach 25%, a trend driven by increased manufacturer competition, declining battery costs and ongoing policy support for clean technologies. To meet decarbonization goals, specifically to limit warming to 1.5 degrees C by 2050 (ITDP), both electrification of vehicles and shifting passengers to more sustainable modes will need to happen in tandem. 

Switching to electric cars and buses is a vital part of decarbonizing transportation. But as EV adoption grows, a concerning trend has emerged: the dominance of larger consumer models such as SUVs and pickups1 . While these still represent a major improvement over fossil fuel-powered vehicles, they bring a new set of challenges.

If left unchecked, this trend risks undermining many of the environmental, social and equity benefits of electrification by straining energy systems, increasing demand for scarce minerals and hindering efforts to deliver a green, fair and inclusive transition to cleaner, renewable energy sources.

Examining these trends offers a critical look at the growing challenge — and an opportunity to lead with smarter, more sustainable solutions.

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https://www.wri.org/insights/electric-vehicles-smaller-better