Electric vehicles are on track to capture nearly one-fifth of the global market this year, according to a new report detailing the “explosive growth” of plug-in cars.
Global sales of electric vehicles hit 10 million in 2022 and are set to reach 14 million this year, according to a report from the International Energy Agency. EVs, which had just 14 percent of the global market in 2022, will likely account for 18 percent of the market in 2023.
IEA analysts have consistently revised their projections for future sales upward. While last year, the IEA projected that EVs would account for 21 percent of global sales in 2030, it now projects EVs will reach 35 percent of sales by that year. New standards and incentives in the EU, U.S., and China are set to boost EV purchasing, with electric cars accounting for 60 percent of sales across these three markets in 2030, the report estimates.
In India and Indonesia, EV buying remains low, with plug-in cars accounting for less than 2 percent of sales, but their growth is exponential. Last year, EV sales more than tripled in both countries, and all-electric two- and three-wheeled vehicles are surging in popularity. More than half of three-wheeled vehicles registered in India last year were electric, according to the report.
“The trends we are witnessing have significant implications for global oil demand,” the IEA’s executive director Fatih Birol said in a statement. The IEA now projects that oil demand will peak in 2025. “The internal combustion engine has gone unrivaled for over a century, but electric vehicles are changing the status quo,” Birol said.