At least 5 million barrels of oil per day will be saved by electrification in 2030. At the same time, over time, each vehicle will save 15 tons of carbon dioxide on average, which will correspond to 5.665 liters of fuel. The benefit will be greater after 2030, when sales of electric cars will increase even more, but also a little later when cars will be followed by electric buses and trucks.
Record sales of electric vehicles
Global sales of electric cars are set to grow to a record high this year, expanding their share of the overall car market to close to 20%. A rate that will lead to the transformation of the automotive industry.
o OT.gr and on your mobile phone! Download the iOS app from the Apple Store
The new edition of the IEA's (International Energy Agency) annual Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to increase by 35% this year, reaching 14 million. This explosive growth means that the share of electric cars in the total car market has increased from around 4% in 2020 to 14% in 2022 and is set to increase further to 18% this year.
"Electric vehicles are one of the driving forces in the rapidly emerging new global energy economy and are bringing about a historic transformation of the automotive manufacturing industry worldwide," said IEA Executive Director Fatih Birol.
Dominant markets
The vast majority of electric car sales to date are mainly concentrated in three markets. In China, Europe and the United States. China accounts for close to 60% of global electric car sales. Today, more than half of the world's electric cars are in China. Europe and the United States, the second and third largest markets, have seen strong growth in recent years with sales expected to grow by 15% and 55% respectively in 2022.
Ambitious policy programs in major economies, such as the "Fit for 55" package in the European Union and the Inflation Reduction Act in the United States, are expected to further increase the market share for electric vehicles in the coming years. By 2030, the average share of electric cars in total sales across China, the EU and the United States is expected to increase to around 60%.
China is the first power in batteries
Encouraging trends have positive effects on battery production and supply chains. The report highlights that announced battery manufacturing projects are enough to meet demand for electric vehicles until 2030. However, manufacturing will remain in China, which dominates the battery and component trade and is expected to further increase its sales by 35 % compared to last year.
Other economies have announced policies to boost domestic industries that will improve their competitiveness in the electric vehicle market in the coming years. The EU aims for nearly 90% of annual battery demand to be met by domestic battery manufacturers. Major electric vehicle manufacturers have started major multi-billion euro investments.
Emerging markets
Despite the concentration of electric car sales and manufacturing in just a few major markets, there are many conditions for major growth in other regions of the globe. Sales of electric cars more than tripled in India and Indonesia last year, and more than doubled in Thailand. The share of electric cars in total sales increased to 3% in Thailand and 1,5% in India and Indonesia. A combination of effective policies and private sector investment is likely to increase these shares in the future. In India, the government's US$3,2 billion incentive program, which has attracted investments worth US$8,3 billion, is expected to significantly increase battery production and electric car traffic in the coming years.
In emerging and developing economies, the most dynamic sector of electric mobility is two- or three-wheeled vehicles, which outnumber cars. For example, more than half of three-wheeler registrations in India in 2022 were electric, demonstrating their growing popularity. In many developing economies, two-wheelers or tricycles offer an affordable way to access sustainable mobility, meaning their electrification is important to support sustainable development.
Source: RES - EIA
