Rising Demand for Electric Vehicles Fuels 35% Sales Growth Forecast in 2023, according to a new report by the International Energy Agency (IEA). According to the report, the sales of electric cars are expected to grow by 35% this year, reaching a total of 14 million.
Rising Demand for Electric Vehicles Fuels 35% Sales Growth Forecast in 2023
The world is witnessing a surge in the demand for electric vehicles (EVs), with a record-breaking sales growth projected to reach 35% this year. As per a report by the International Energy Agency (IEA). The report finds that over 14 million electric cars sales will take place globally in 2023, up from 10 million in 2022. This growth has led to an increase in EVs’ market share from 4% in 2020 to 14% in 2022, with a projected share of 18% this year.
China continues to be the global leader in EV sales, with 60% of all-electric car sales in 2022, followed by Europe and the United States. However, there are promising signs of EV sales growth in emerging and developing economies like India, Indonesia, and Thailand.
The report highlights that the growth in EV sales has significant implications for global oil demand. By 2030, the shift towards EVs will eliminate the requirement for 5 million barrels of oil daily. This will lead to far-reaching implications for the energy sector, particularly oil.
The trend towards EVs is also having a positive impact on battery production and supply chains. The IEA report states that battery manufacturing projects announced to date will be sufficient to meet the demand for EVs until 2030. This is based on the IEA’s Net Zero Emissions by 2050 Scenario. However, the battery and component trade remain highly concentrated, with China accounting for over 35% of global electric car exports in 2022.
Several major economies are implementing ambitious policy programs to increase the market share of EVs this decade and beyond. For instance, the European Union’s Fit for 55 package and the United States’ Inflation Reduction Act will significantly boost the market share of EVs.
EV sales growth is not limited to cars alone. In many developing economies, two- or three-wheelers offer an inexpensive means of transportation. This makes their electrification important to promote sustainable development. In 2022, more than half of India’s three-wheeler registrations were electric, indicating their increasing popularity.
The IEA report emphasizes that the growth of EVs is revolutionizing the automobile manufacturing industry worldwide. The report suggests that the trend towards EVs will only continue in the coming years. Effective policies and private sector investment will be driving the EV sector.
In conclusion, the growth of EVs is a promising trend that has significant implications for global oil demand and the energy sector. As more economies adopt ambitious policies to increase the market share of EVs, the trend towards electric mobility will continue, promoting sustainable development and reducing carbon emissions.