The IEA expects a “new growth phase” for electric cars – E24

This year, electric cars are expected to make up 45 percent of new car sales in China, IEA estimates.

Although some markets face setbacks due to, among other things, the phasing out of subsidies, electric cars continue to occupy the world’s car fleet.

This is according to an electric car report from the International Energy Agency (IEA), a Paris-based organization that provides OECD countries with advice on energy.

Among the large countries, China stands out, with electric car sales expected to reach 10 million this year. The IEA expects that electric cars will thus make up 45 percent of Chinese new car sales.

With current policy, every third car in China is expected to be electric by 2030, while every fifth car in the US and the EU is expected to be electric in the same period, according to the IEA. These are some of the key markets for electric cars so far.

But electric cars are now also taking over countries such as Vietnam, where the share of new car sales was 15 per cent, and Thailand, where the share was 10 per cent, the energy agency points out.

Most Chinese electric cars are now cheaper than equivalent fossil cars, while in Europe and the USA fossil cars are still the cheapest on average, the IEA points out.

– New growth phase

– The progress for electric cars is clearly shown in our data, although it is stronger in some markets than in others, says IEA CEO Dr. Fatih Birol in a message.

– The electric car revolution seems to be gearing up for a new growth phase, he says.

Birol points out that this will have major consequences for both the car industry and the energy industry.

Around 17 million electric cars will be sold globally in 2024, the IEA believes. Last year, close to 14 million were sold, a growth of 35 per cent from the previous year.

Will be able to curb oil demand

The IEA assumes that every second car sold globally in 2035 will be electric.

If all the world’s countries were to manage to reach their own set targets, then two-thirds of the cars sold in 2035 will be electric, the IEA estimates.

In that case, this would reduce the demand for oil globally by around 12 million barrels per day, the IEA estimates. Currently, global oil demand is around 100 million barrels per day.

In order to meet charging needs in line with various countries’ electric car targets, charging networks globally will have to be expanded sixfold by 2035, the IEA points out. This also requires good planning of grid development to avoid problems in the power system, emphasizes the energy agency.