The International Energy Agency (IEA) asserts that the electric car revolution is well underway and gaining momentum. According to the IEA, global electric vehicle (EV) sales are expected to surge by more than 20% this year, reaching a total of 17 million vehicles, largely driven by strong demand in China.
In its latest report, the IEA projects that the increasing demand for EVs over the next decade will reshape the global automotive industry and significantly reduce oil consumption for road transport. The agency anticipates that by 2035, half of all cars sold worldwide will be electric, assuming that charging infrastructure keeps pace. This projection encompasses both battery electric vehicles and plug-in hybrids.
The IEA’s optimistic long-term outlook for EVs, based on current government policies, contradicts recent concerns about slowing EV penetration. According to Fatih Birol, the executive director of the IEA, recent data does not indicate a reversal but rather shows a strong increase in global EV sales.
Moreover, the growth in EV adoption is not limited to China. The European Union saw a nearly 4% increase in the number of new battery electric cars sold in the first quarter of this year compared to the same period in 2023, according to the European Automobile Manufacturers’ Association.
Birol emphasizes that instead of tapering off, the global EV revolution seems to be entering a new phase of growth.
However, despite these positive trends, EV manufacturers are facing challenges such as slim profit margins due to intense price competition. In response, companies like Tesla and Chinese EV maker Li Auto have recently reduced prices on major models in key markets like China, as well as in Germany and the United States for Tesla.