Nearly 20% of all new cars sold worldwide will be electric this year, according to a new report from International Energy Agency. That’s a 35% annual increase, says the organization, whose 42 member states account for three-quarters of the planet’s energy demand.
released wednesday, Global Electric Vehicle Outlook Expect more than 14 million electric vehicles to be sold by the end of 2023, surpassing the record of 10 million purchased in 2022.
Read on: All cars qualify for the $7,500 Electric Vehicle Tax Credit
“Electric vehicles are one of the driving forces in the rapidly growing new global energy economy – and they are transforming the automotive manufacturing industry worldwide,” Fatih Birol, Executive Director of the International Energy Agency, said in a statement.
Birol added that this trend indicates that by 2030, global energy demand will require at least 5 million barrels of oil per day.
“The cars are just the first wave,” he said. “Electric buses and trucks will follow soon.”
Electric vehicles accounted for 14% of the global auto market in 2022, which is a massive expansion from 4% in 2020. According to projections by the International Energy Agency, this number will jump to 18% by the end of 2023.
By far, China is leading the charge: 60% of global electric vehicle sales last year were in China, according to the report, and the country is home to more than half of all zero-emission vehicles on the road today. Europe and the United States ranked second and third, respectively.
The International Energy Agency has projected that electric vehicle sales will average 60% of all vehicle sales in those three markets by 2030.
The agency pointed to government programs — such as tax incentives and freight terminal infrastructure The Biden Administration’s Inflation Reduction Act – as well as the prices of smaller models that will compete with combustion engine cars in the next few years.
The report was also optimistic about the growth of electric vehicles in Southeast Asia, where two- and three-wheeled models are most popular. In Thailand, electric vehicle sales have doubled in 2022 to 3% of the market share, and in India and Indonesia, they have tripled to 1.5%.
“A combination of effective policies and private sector investment is likely to increase these shares in the future,” the IEA said.
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