Based on IEA records more than 10 million electric cars sold worldwide in 2022. Sales is this year it is expected to grow by 35 percent and reach 14 million. The share of electric cars in sales will reach 18 percent this year, after 14 percent in 2022. In 2020, the share stood at four percent.
The emerging trend also has a significant impact on global oil demand.
The internal combustion engine has performed exceptionally well for more than a century, but the arrival of electric vehicles is upsetting the status quo. According to him, electric cars will cause the use of 5 million barrels of oil per day by 2030. “The transformation of passenger cars is only the first wave, they will soon be followed by electric buses and trucks,” the analysis states.
Sales of electric cars are concentrated in three major markets: China, Europe and the United States. The largest market is China with 60 percent of global sales in 2022. Today, more than half of the electric cars in circulation worldwide are driven in China. Their presence in Europe and the United States, the second and third largest markets, also show strong sales growth of 15 and 55 percent.
Ambitious stimulus programs are in place in all major markets, the “Fit for 55” in the European Union and the “Inflation Reduction Act” in the United States. Largely thanks to the programs, by 2030 the average share of electric cars in all sales in China, the EU and the United States may rise to around 60 percent.
The trends also have a positive impact on battery manufacturing and supply chains. The new report highlights that announced battery manufacturing projects will be more than enough to meet demand for electric vehicles through 2030. However, manufacturing remains highly concentrated, with China dominating the production of batteries and electric drivetrain components, and last year it accounted for 35 percent of global electric car exports.
For example, the “EU Net Zero Industry Act” aims to change this situation, which aims to build the capacity necessary to cover 90 percent of battery demand domestically. Similarly, the US Anti-Inflation Act focuses on building domestic supply chains for electric vehicles, batteries and necessary raw materials.
Even though sales and production of electric cars are concentrated in only a few large markets, there are promising signs in other regions. Sales of electric cars more than tripled last year in India and Indonesia, albeit from a low base, and more than doubled in Thailand. In emerging and developing economies, the most dynamic area of electric mobility is that of two- or three-wheeled vehicles., the number of which exceeds that of passenger cars. In India, for example, by 2022 more than half of three-wheeler registrations were electric. In many developing economies, two- or three-wheeled vehicles are affordable alternatives for mobility.
Cover image: Getty Images
