Electric cars: how the market changed, what they cost today and what it means for your wallet
One in four new cars in the world is already electric. What changed supply and demand, how much batteries fell and how much drivers can save in Chile today.
· 12 min read
Ten years ago, electric cars were an expensive rarity for a few. In 2025, more than 20 million were sold worldwide: one in four new cars, according to the International Energy Agency's (IEA) Global EV Outlook 2026. In this chapter of "The Power of the Consumer" we explain what changed: how supply and demand moved, what governments did, why prices fell, how much you can save in Chile and what all this has to do with expensive gasoline.
The chapter in 30 seconds
- Demand took off: 1 in 4 new cars in the world is electric. In Chile, 1 in 16.
- Supply responded: about 1,000 of the 2,500 car models sold worldwide are already electric.
- Batteries got 93% cheaper since 2010. It is the main reason prices fell.
- Governments pushed, but they don't explain everything: where subsidies were removed, sales fell; where cars are already cheap, they kept growing.
- In China, 7 in 10 electric cars already cost less than the average combustion car.
- Driving a kilometer costs more than 3 times less with electricity than with gasoline in Santiago, even if the car costs more to buy.
- Expensive gasoline speeds up the shift: the IEA projects that almost 30% of cars sold in 2026 will be electric.
1. Demand: from niche to one in four
over 20 million
Electric cars sold worldwide in 2025
1 in 4 new cars
Source: IEA, Global EV Outlook 2026
View the data as a table
| Electric cars sold worldwide in 2025 | over 20 million | 1 in 4 new cars |
The jump was uneven. China leads with more than 13 million electric cars sold in 2025, almost 55% of all its sales. Europe sold 4.2 million (28%). In the United States, by contrast, the share stayed below 10%. And Norway is the extreme case: about 97% of new cars sold there were electric.
Latin America sold more than 350,000 electric cars in 2025, 75% more than the year before. Brazil leads the region with 180,000 (9% of its sales). In Chile the share is about 4%, but it quadrupled between 2023 and 2025, according to the IEA.
And 2026 is following the same path. According to ANAC, between January and September 14,837 electric and plug-in hybrid cars were sold in Chile, 144.6% more than in the same period of 2025: already 6.3% of new cars, one in 16. We cover it in detail in our article on electromobility in Chile.
2. Supply: when consumers ask, brands respond
about 1,000
Electric car models worldwide
40% of the 2,500 models on sale
Source: IEA, Global EV Outlook 2026
View the data as a table
| Electric car models worldwide | about 1,000 | 40% of the 2,500 models on sale |
A few years ago, anyone who wanted an electric car had to choose among a handful of models. Today, about 1,000 of the roughly 2,500 models sold worldwide are electric, according to the IEA. In 2025 alone, the number of electric models grew by slightly more than 25%.
The map of who makes them also changed. In 2025, Chinese brands supplied 60% of the electric cars sold worldwide, and China built almost three in four. Outside the three big markets (China, Europe and the United States), 55% of the electric cars sold came from China, up from less than 5% five years earlier.
For Chilean consumers, that competition shows up in the showroom: more models, more brands and more types of electrified cars. ANAC distinguishes four:
| Type | How it works | Does it plug in? | Sales in Chile, Jan-Sep 2026 |
|---|---|---|---|
| Battery electric (BEV) | Battery only, no gasoline | Yes | 8,209 |
| Plug-in hybrid (PHEV) | Battery for daily use and gasoline for trips | Yes | 6,628 (includes range extenders) |
| Hybrid (HEV) | Gasoline with electric assistance | No | 11,586 (includes range extenders) |
| Mild hybrid (MHEV) | Gasoline with a small support battery | No | 19,443 |
3. What drove the change
There was no single cause. Three forces combined: cheaper batteries, public policy and competition among manufacturers.
Batteries: the most expensive part, 93% cheaper
-93%
Battery prices since 2010
from US$ 1,474 to US$ 108 per kWh, in real terms
Source: BloombergNEF, 2025 battery price survey
View the data as a table
| Battery prices since 2010 | -93% | from US$ 1,474 to US$ 108 per kWh, in real terms |
The battery is the most expensive part of an electric car. According to BloombergNEF, the average price of a lithium-ion battery pack fell from US$ 1,474 per kWh in 2010 to US$ 108 in 2025, in today's dollars. For electric cars, the average is already below US$ 100 per kWh (US$ 99) for the second year in a row.
In simple terms: a 50 kWh battery, a common size in a compact car, cost about US$ 74,000 in 2010 (in today's dollars) and costs about US$ 5,400 today. BloombergNEF attributes the latest drop to manufacturing overcapacity, competition and the shift to LFP batteries (lithium iron phosphate), which average US$ 81 per kWh, versus US$ 128 for NMC. In China, the average is US$ 84 per kWh; in North America and Europe, 44% and 56% higher.
Public policy: the initial push
Governments in developed countries used different tools, with different results:
| Country or region | What it did | What happened |
|---|---|---|
| Norway | VAT exemption for electric cars on the first NOK 500,000 of the price (about US$ 46,500), reduced in 2026 | About 97% of new cars sold in 2025 were electric |
| China | Full exemption from the 10% purchase tax, replaced in 2026 by a 50% reduction | Reached almost 55% electric; global sales fell 8% in Q1 2026 after the changes |
| European Union | CO2 emission targets for automakers: in 2025, 15% less than in 2021 | Brands launched cheaper models to comply; sales grew more than 30% |
| United States | End of tax credits for new and used electric cars after September 2025 | Q4 2025 sales were 45% lower than a year earlier |
Source: IEA, Global EV Outlook 2026.
The lesson is twofold. Incentives speed up the shift while cars are still expensive, and removing them abruptly slows it down. But the weight of subsidies is shrinking: according to the IEA, government support fell from more than 12% of total spending on electric cars in 2019 to less than 7% in 2025. Today, the vast majority of what is paid for these cars comes out of consumers' pockets.
In Chile, the National Electromobility Strategy sets that by 2035 100% of sales of light and medium vehicles, and of public transport, will be zero emission.
Innovation: competition and new technologies
Besides cheaper batteries, competition pushed innovation: more range per kWh, faster charging and new types of vehicles, such as range-extended electric cars. LFP batteries, cheaper and more durable, took over entry-level models. And energy changed too: in Chile, sun and wind already generate 38% of electricity, as we explain in our article on renewable energy in Chile.
4. Price: from luxury to affordable
7 in 10
Electric cars cheaper than the average combustion car, in China
before any subsidy
Source: IEA, Global EV Outlook 2026
View the data as a table
| Electric cars cheaper than the average combustion car, in China | 7 in 10 | before any subsidy |
The fall in battery prices reached the showroom. According to the IEA:
- In China, the average price of an electric car fell more than 10% in 2025, and about 70% of electric cars sold were already cheaper than their combustion equivalent before subsidies (50% in 2021).
- In Europe, the average price gap with a combustion car fell to about 20%, the first drop since 2021. More than 30% of electric cars sold already cost less than the average comparable combustion car.
- In the United States, the gap for electric SUVs stayed below 25%.
- In Indonesia, the gap fell from more than 50% in 2024 to about 40% in 2025.
That means more access. When an electric car costs the same as a gasoline one, the decision stops being a luxury and becomes a cost calculation. Chile does not yet have a public record of the average price of electric cars versus combustion cars, so it is best to get quotes model by model and compare the total cost, not just the list price.
5. Your wallet: what it costs to get around on electricity
more than 3 times less
Cost per kilometer
with electricity than with gasoline, in Santiago
Source: InfoByData calculation with the average 93-octane gasoline price reported to the CNE (Nov 13, 2026) and the reference efficiencies of the National Electromobility Strategy
View the data as a table
| Cost per kilometer | more than 3 times less | with electricity than with gasoline, in Santiago |
To compare, we use the reference efficiencies of the National Electromobility Strategy: 11.7 km per liter for a gasoline car and 5.4 km per kWh for an electric one. The 93-octane gasoline price is the national average of CLP 1,626 per liter reported by gas stations to the CNE. For electricity we use the residential rate in Enel's service area, in Santiago, which is around CLP 218 to 236 per kWh including VAT, depending on the municipality and network charges. If you live elsewhere, check the kWh price on your bill.
| Scenario | Cost per kilometer | 1,000 km a month |
|---|---|---|
| 93-octane gasoline (CLP 1,626 per liter) | CLP 139 | CLP 139,000 |
| Electricity at CLP 218 per kWh | CLP 40 | CLP 40,370 |
| Electricity at CLP 236 per kWh | CLP 44 | CLP 43,700 |
InfoByData calculation. The electricity rate varies by municipality and network charges.
At these rates, someone who drives 1,000 km a month saves between CLP 95,000 and 99,000 a month on energy. But savings are not everything: an electric car usually costs more to buy, and the math works better the more kilometers you drive. The IEA estimates that, at April 2026 oil prices, the annual savings from driving an electric car in the European Union grew 35% compared with 2025.
If you want to understand where the price of gasoline comes from, we explain it in our article on rising gasoline prices in Chile.
6. Your lifestyle: charging at home changes the routine
1,260
New private chargers in Chile in 2026
versus 111 public ones
Source: ANAC, September 2026, with SEC data
View the data as a table
| New private chargers in Chile in 2026 | 1,260 | versus 111 public ones |
Owning an electric car changes habits. Instead of going to the gas station, most people charge at home or at work while the car is parked. The data show it: between January and September 2026, 1,260 private chargers and only 111 public ones were registered in Chile, according to ANAC with SEC data.
The public network exists, but it grows slowly. As of September 15 there were 1,853 public charging points connected: 1,155 slow, 496 fast and 202 ultra-fast. This year 209 were added, 52.4% fewer than in 2025.
In practice, an electric car works best for people who:
- Can charge at home or at work. It is the cheapest and most convenient way.
- Have predictable daily trips. The range of most models easily covers a normal day in the city.
- Plan long trips. With a public network that grows slowly, it is best to check the route before leaving.
For those with nowhere to charge or who travel a lot outside the city, plug-in hybrids are a middle ground: they use the battery day to day and gasoline for trips.
7. Myths and facts
| What people say | Verdict | What the data show |
|---|---|---|
| "Electric cars are only for the rich" | Half true | Batteries fell 93% since 2010 and in China 7 in 10 electric cars cost less than a combustion car. In Europe and Chile they are still usually more expensive to buy |
| "Nobody buys electric cars" | Myth | They are 1 in 4 new cars worldwide and 1 in 16 in Chile |
| "They only sell because of subsidies" | Myth | Subsidies are less than 7% of total spending on electric cars, and the IEA projects they will keep gaining ground in China even with less support |
| "An electric car is cheaper to run" | Fact | Driving a kilometer costs more than 3 times less with electricity than with gasoline in Santiago |
| "There is nowhere to charge them" | Half true | There are 1,853 public points, but most people charge at home. Without your own parking, it is harder |
8. Expensive gasoline and what comes next
23 million
Electric cars to be sold worldwide in 2026
about 30% of sales
Source: IEA, Global EV Outlook 2026
View the data as a table
| Electric cars to be sold worldwide in 2026 | 23 million | about 30% of sales |
The price of oil is the other big driver of this shift. In May 2026, IEA Executive Director Fatih Birol described the crisis caused by the war in the Middle East as "the largest oil supply shock in history", and the agency warned that consumers are worried about volatile fuel prices. In Chile, gasoline rose 23.3% in twelve months, according to INE, and ANAC attributes much of the jump in plug-in car sales to higher fuel prices.
The IEA's projections for 2026:
- 2025
- 2026 (projection)
Source: IEA, Global EV Outlook 2026. Europe 2026: "one in three"; China 2026: "almost 60%"
View the data as a table
| 2025 | 2026 (projection) | |
|---|---|---|
| World | 25% | 28% |
| Europe | 28% | 33% |
| China | 55% | 60% |
- Worldwide, 23 million electric cars would be sold, 28% of the total.
- In Europe, one in three cars sold would be electric.
- In Latin America, sales would grow 45%.
- By 2035, the global electric car fleet could reach 510 million, up from about 80 million today.
In Chile, the official goal is that by 2035 all new light vehicles sold will be zero emission. Today they are 6.3% of sales. The gap is large, but the trend of the last three years, with the share quadrupling between 2023 and 2025 and plug-in sales more than doubling in 2026, shows that demand is moving.
Quick guide before buying
- Where will you charge? If you have parking at home or at work, an electric car is easier to use.
- How many kilometers do you drive a month? The more you drive, the faster the higher purchase price pays off.
- Do you often take long trips? A plug-in hybrid can be a good middle ground.
- Compare the total cost. Add up the price, energy and maintenance over several years, not just the list price.
- Check the efficiency label. The Ministry of Energy publishes each model's efficiency on consumovehicular.cl.
What it means for you
- For your wallet: with expensive gasoline, every kilometer on electricity costs more than 3 times less. Do the math with your kilometers and your electricity rate before deciding.
- For your home: if you can charge at home, an electric car changes the routine: it charges while you sleep, instead of a trip to the gas station.
- For the market: demand has already changed supply. More models and cheaper batteries mean more options and lower prices for future buyers.
- For the country: every car that runs on Chilean electricity, which is increasingly renewable, reduces dependence on oil whose price is set far from Chile.
Sources
- IEA, Global EV Outlook 2026: executive summary and trends in electric cars
- IEA, "Close to 30% of cars sold this year are set to be electric as countries and consumers respond to energy crisis" (May 20, 2026)
- BloombergNEF, 2025 lithium-ion battery price survey (December 9, 2025) and record-low prices analysis
- ANAC, Zero and low emission vehicles report, September 2026 (with SEC data)
- Ministry of Energy, National Electromobility Strategy (2021) and approval and publication (2022)
- CNE, Bencina en Línea, prices by station as of November 13, 2026
- INE, Consumer Price Index, October 2026
- electric cars
- electromobility
- battery prices
- public policy
- gasoline
- consumption
Keep reading the series
- 01Household spending in Chile: where the family budget goes, according to the INE
- 02Electric cars: how the market changed, what they cost today and what it means for your wallet