Global Demand For Electric Cars Booming In 2023

(RTTNews) - Global demand for electric cars is booming in 2023 with sales of the vehicles expected to grow by 35 percent this year to reach 14 million from the more than 10 million electric cars sold worldwide in 2022, according to the new edition of the International Energy Agency's annual Global Electric Vehicle Outlook.

The electric cars' share of the overall car market has risen to 14 percent in 2022 from around 4 percent in 2020 and is set to increase to 18 percent in 2023, based on the latest IEA projections.

The report notes that this major transformation of the auto industry has its implications for the energy sector, especially global oil demand. This electrification is set to avoid the need for at least 5 million barrels of oil a day by 2030.

The majority of the electric car sales are happening mainly in three markets - China, Europe and the United States. China has a 60 percent share of the global electric car sales in 2022, with Europe and the U.S being the second and third largest markets. Sales grew 15 percent in Europe and 55 percent in the U.S. in 2022.

By 2030, the average share of electric cars in total sales across China, the EU and the United States is set to rise to around 60 percent.

Though electric car sales and manufacturing are concentrated in three markets, there are promising signs in other regions such as India, Indonesia and Thailand. Sales have tripled in India and Indonesia from a low base, and more than doubled in Thailand. The share of electric cars in total sales rose to 3 percent in Thailand, and to 1.5 percent in India and Indonesia.

In emerging and developing economies, the concentration of electric mobility is in two and three-wheel vehicles, which outnumber cars. In these regions, two and three-wheel vehicles offer an affordable way to get access to mobility, which means their electrification is important to support sustainable development.