Electric car sales to surge in ’24 – IEA
The International Energy Agency (IEA) released on Tuesday it is Global Electric Vehicle Outlook anticipating a robust increase in electric car sales to 17 million this year, up from 14 million in 2023, despite some economic hurdles.
This trend indicates that electric vehicles will constitute over one-fifth of global car sales, which is likely to lead to a decrease in oil demand for road transport.
Despite concerns about tight margins, volatile battery metal prices, high inflation, and the phase-out of purchase incentives in some countries, global sales data remain robust, according to the report.
Sales in the first quarter of this year posted a 25 per cent increase compared to the same period last year, amounting to a volume equivalent to the total sales for the entire year of 2020, as noted by the IEA.
The report also highlighted significant regional differences in electric car purchases, with China leading the market with an estimated 10 million electric vehicles, accounting for nearly half of all vehicles sold.
In contrast, electric vehicles are expected to make up one in nine sales in the United States and one in four in Europe.
Affordability remains a key factor for the sector’s growth. While internal combustion cars are still more affordable than their electric counterparts in Europe and the United States, nearly two-thirds of electric cars sold in China last year were cheaper than traditional vehicles.
The IEA highlighted that electric cars are generally getting cheaper as battery prices drop, competition intensifies, and carmakers achieve economies of scale. However, it also noted that in some cases, prices stagnated or even rose slightly between 2018 and 2022, adjusting for inflation.
The agency added that meeting the growing demand with charging infrastructure will pose a significant challenge, with charging networks needing to grow six-fold by 2035.
