Electric cars are expected to make up nearly one-fifth of the global market this year, according to the International Energy Agency’s (IEA) outlook report for the electric vehicle market released on Wednesday.

Sales are expected to grow by 35% this year to reach 14 million, the report said, comprising 18% of the market – up from just 4% in 2020.

The shift from combustion engine to electric cars will reduce global demand for oil by at least five million barrels a day, according to the IEA’s projections.

Over half of electric cars on the road so far worldwide are in China, which also dominates global battery production and was responsible for 60% of electric car sales in 2022.

SUVs and large cars account for nearly two thirds of battery-electric models in China and Europe and even more in the United States.

“Outside of China, there is a need for original equipment manufacturers (OEMs) to offer affordable, competitively priced options in order to enable mass adoption of EVs,” the report said.

In emerging and developing economies, two- or three-wheel electric vehicles outnumber cars. Over half of India’s three-wheeler registrations in 2022 were electric, according to the study.

Source – Reuters