This study investigates the impact of electric vehicle (EV) adoption rates on air pollution, considering their varying levels of inclusive and sustainable industrialization. The study utilizes data from 45 countries worldwide over the period 2010 to 2020, employing a panel threshold model to analyze the relationships. The Sustainable Development Goal (SDG) 9 Index, a measure of sustainable industrialization, is used as the threshold variable to categorize countries into three groups: low, medium, and high levels of green industrial development. The findings reveal a nonlinear relationship between EV adoption and air pollution and the significant role of inclusive and sustainable industrialization. In countries with low and medium levels of green industrial development, increased EV usage relative to population surprisingly leads to a statistically significant increase in air pollution. Conversely, in countries with high levels of green industrial development, a rise in the proportion of EVs to the population significantly contributes to reducing air pollution. These results highlight the importance of considering a country’s level of sustainable industrialization when evaluating the environmental impact of EV adoption. The study suggests that the effectiveness of EV adoption in reducing air pollution is contingent on a country’s overall industrial sustainability.