Sales of electric vehicles (EVs) are set to surge dramatically in 2024, despite challenging conditions in some markets. According to the latest forecast from the International Energy Agency (IEA), 17 million EVs are expected to be sold worldwide, up from 14 million in 2023.
This growth means that one in five cars sold in 2024 will be electric, significantly reducing demand for oil in road transport. China, as the world’s largest automotive market, will play a key role, with an estimated 10 million EVs sold there.
Despite concerns about rising battery prices, high inflation, and the phasing out of incentives in some countries, global EV sales remain strong. In the first quarter of 2024, global sales grew 25% year-on-year.
In the United States, EVs are expected to account for about one in nine newly registered vehicles in 2024, while in Europe they should make up a quarter of new sales. In China, EVs are forecast to account for nearly half of all vehicles sold.
While EV prices in Europe and the United States still exceed those of models with internal combustion engines, in China, nearly two-thirds of EVs were cheaper than traditional cars last year. Falling battery prices, growing competition, and economies of scale are all driving down the overall cost of EVs.
“Electric vehicles are becoming increasingly affordable and this trend is expected to continue in the future,” the IEA said. “The growing demand for sustainable transport and stricter emissions standards are driving the transition to electric vehicles, which is having a major impact on the global automotive industry.”
Conclusion:
The EV market is on the rise and is expected to see strong growth in the coming years. Increasing affordability, lower emissions, and stricter standards are making EVs an increasingly attractive alternative to cars with internal combustion engines. This trend is having a significant impact on the automotive industry and helping to combat climate change.
