Electric cars are set to dominate the global auto industry, with more than one in five cars sold worldwide this year expected to be electric, According to the IEA’s Global EV Outlook, The report predicts that global electric car sales will reach around 17 million by the end of 2024, with sales growing by 25% in the first quarter compared to the same period last year.
CHINA LEADS THE WAY IN ELECTRIC CAR SALES
China is expected to lead the way in electric car sales, with over 10 million cars sold projected by the end of 2024. This represents around 45% of all car sales in the country. In contrast, the United States is expected to see around 2 million electric cars sold, representing around 1 in 9 cars sold. In Europe, electric cars are still expected to represent around 1 in 4 cars sold, despite a weak outlook for passenger car sales and the phase-out of subsidies in some countries.
Investment in Electric Vehicle Supply Chain and Policy Support Key to Growth
The report finds that substantial investment in the electric vehicle supply chain and ongoing policy support are key to continued growth in electric car sales. Declines in the price of EVs and their batteries are also expected to drive growth. The report predicts that under current policy settings, every other car sold globally will be electric by 2035. However, if countries’ announced energy and climate pledges are met in full and on time, two in three cars sold would be electric by 2035.
IMPACT ON OIL CONSUMPTION AND AUTO INDUSTRY
The rapid uptake of electric vehicles is expected to avoid the need for around 12 million barrels of oil per day, equivalent to current demand from road transport in China and Europe combined. The report also highlights the major ramifications for both the auto industry and the energy sector as a result of this shift.
CHALLENGES AHEAD
The IEA report emphasizes that the pace of the transition to EVs may not be consistent and will hinge on affordability. The report also highlights that ensuring that the availability of public charging keeps pace with electric vehicle sales is crucial for continued growth. Additionally, policy support and careful planning are essential to make sure greater demand for electricity from charging does not overstretch electricity grids.
The IEA’s Global EV Outlook paints a picture of a rapidly changing auto industry, with electric cars set to dominate global sales. While challenges lie ahead, the report highlights that substantial investment in the electric vehicle supply chain and ongoing policy support are key to continued growth. As the world transitions towards a more sustainable future, it is clear that electric cars will play a major role in reducing our reliance on fossil fuels.
