Electric Car Sales on the Rise: Latest IEA Forecast

IEA forecast: Sales of electric cars are picking up

Electric Car Sales on the Rise Globally

The number of electric cars sold globally has significantly increased over the past few years. In 2020, 4 percent of all new cars worldwide were electric, while in 2022, the number rose to 14 percent. The International Energy Agency (IEA) has predicted that this year, electric car sales could increase to around 18 percent globally. In Germany, the proportion of electric cars sold reached around this mark in 2022 with government support.

Five Million Barrels Less Oil Per Day

The IEA’s forecast predicts that sales will increase by approximately 35 percent to 14 million electric cars worldwide. Electric vehicles are a driving force in the new global energy economy that is emerging, said IEA Director Fatih Birol. He believes that they have brought about a historic change in the automotive industry worldwide.

Birol argues that the trends observed are having a significant impact on global oil demand. By 2030, e-mobility should avoid the need for at least five million barrels of oil per day. Currently, around 100 million barrels of oil are processed per day, a large portion of which is burned.

China Leading the Way

According to the IEA, electric car sales have been concentrated in China, Europe, and the United States. China is the frontrunner where over half of all electric cars worldwide are currently in use. Europe and the United States – the second and third largest markets – have both shown significant growth, with sales increasing 15 and 55 percent, respectively, over the last year. Increasing sales are also being reported albeit from a low base in countries such as India, Indonesia, and Thailand.

Positive Impact on Battery Production

The encouraging trend of increasing electric car sales is also having a positive impact on battery production, according to the IEA report. The report highlights that battery production remains highly concentrated, with China dominating the trade in batteries and components, and increasing its share of global electric car exports to over 35 percent last year.

Overall, electric cars are driving a shift in the global energy economy, and many countries are showing increasing interest in them. The growing trend of electric vehicles is not only beneficial for the environment, but it is also positively impacting the global economy.

Leave a Reply