According to the latest edition of the International Energy Agency’s (IEA) annual Global EV Outlook, electric vehicles (EVs) are on track to dominate the global auto market. With an impressive 25% growth in sales during the first quarter of 2024 compared to the same period in 2023, electric cars are quickly becoming a common sight on roads worldwide. This year alone, EV sales are expected to reach approximately 17 million units.
The report highlights that China is leading the charge, with projected sales of around 10 million electric cars in 2024, representing about 45% of all car sales in the country. Meanwhile, in the United States, EVs are expected to make up one in nine of all cars sold, and in Europe, one in four, despite a general downturn in passenger car sales and the phasing out of subsidies in some regions.
The ongoing growth in the electric vehicle market is supported by significant investments in the EV supply chain and continued policy support from governments worldwide. These factors, combined with falling prices for EVs and their batteries, are setting the stage for even more dramatic shifts in the automotive landscape. By 2035, the IEA predicts that every second car sold globally could be electric, provided current policies remain in place. If countries fully meet their energy and climate commitments, this number could rise to two out of every three cars.
The IEA’s report also notes a trend towards more affordable electric vehicles, particularly in China where over 60% of EVs sold in 2023 were cheaper than their conventional counterparts. In contrast, in Europe and the United States, EVs remain more expensive on average, though prices are expected to drop due to increasing market competition and advances in battery technology.
The expansion of the EV market is anticipated to have profound effects on both the auto industry and the energy sector, reducing oil consumption for road transport significantly. The report underlines the importance of expanding public charging infrastructure to keep up with the rising number of electric vehicles, emphasizing that fast charger installations need to grow sixfold by 2035 to support this transition.
