Electric vehicle (EV) sales are expected to set another record this year, increasing their share of the global car market to nearly one-fifth.
The International Energy Association’s (IEA) annual Global Electric Vehicle Outlook reports that more than 10 million EVs were sold worldwide in 2022 and sales are expected to grow 35% this year to 14 million. Based on these projections, electric cars’ share of the car market will rise to 18% this year from 14% in 2022.
Speaking on the development, IEA Executive Director Fatih Birol said:
Electric vehicles are one of the driving forces in the new global energy economy that is rapidly emerging – and they are bringing about a historic transformation of the car manufacturing industry worldwide. The trends we are witnessing have significant implications for global oil demand. The internal combustion engine has gone unrivalled for over a century, but electric vehicles are changing the status quo. By 2030, they will avoid the need for at least 5 million barrels a day of oil. Cars are just the first wave: electric buses and trucks will follow soon.
China, Europe, and the US have sold most EVs. China led global electric car sales in 2022 by 60%. China has over half the world’s electric cars. Sales rose 15% and 55% in 2022 in Europe and the US, the second and third largest markets respectively.
Positive trends are also benefiting battery production and supply chains. The IEA’s Net Zero Emissions by 2050 Scenario shows that announced battery manufacturing projects could meet EV demand through 2030. China dominates the battery and component trade and exported over 35% of EVs last year.