IEA predicts 35% year-on-year growth in EV sales in 2023

IEA

According to the latest analysis of the International Energy Agency (IEA), global electric vehicle sales will reach 14 million in 2023, a year-on-year increase of 35%, accounting for about 18% of the total annual vehicle sales.

“Electric vehicles are one of the main drivers of the emerging global energy economy, and they are triggering a historic transformation of global auto manufacturing,” IEA Executive Director Fatih Birol said in a statement. “Cars are just the first wave, Electric buses and trucks will soon follow.”

According to CNET, 2.3 million electric vehicles have already been sold worldwide in the first quarter of 2023, a 25% increase from the same period in 2022. The IEA believes that EV sales will accelerate further in the second half of the year. The agency also noted that federal and state EV tax incentives, as well as higher gas prices, could further stimulate EV sales.

Electric vehicle sales in the U.S. currently account for just 8 percent of the car market in 2022, but that figure is still up 55 percent from 2021.

Globally, EV sales will account for 14% of the car market in 2022, compared to just 9% in 2021 and less than 5% in 2020.

Global electric vehicle sales in 2022 are mainly dominated by China, which accounts for 60% of global electric vehicle sales, and Europe and the United States are the second and third largest electric vehicle markets, respectively.

By 2030, the IEA expects EVs to account for about 60% of all new car sales on average in these three markets.

The forecast comes ahead of the European Union’s recent approval of a bill to ban sales of petrol-fueled cars after 2035, and similar legislation passed in Canada and some U.S. states such as California, New York, and Washington.

IEA predicts 35% year-on-year growth in EV sales in 2023