Electric car sales are set to continue their strong growth in 2024, in China especially, according to the International Energy Agency’s (IEA) annual report published on Tuesday.
"The electric vehicle (EV) momentum is clearly reflected in our data," IEA’s director Fatih Birol pointed out in a press release. He noted that "instead of slowing down, the global electric revolution seems set for another growth stage". This comes on the waves of increased investment in battery production, aligning the supply chain with the ambitious plans of automobile manufacturers.
However, the industry has faced significant issues: reduced margins, volatile battery material costs, soaring inflation and subsidy cuts in countries such as Germany have sparked worries about sector growth. However, the obstacles are focused predominantly in a few European countries. By contrast, China – the leading market for EV sales – is less affected and "global sales remain strong", stated the IEA.
As of the first quarter of 2024, EV sales have climbed 25% year-on-year, as was seen in 2023 compared to 2022 sales. The IEA predicts that 2024 will follow this trend and see yet another record year with a projected 20% increase in EV sales. Forecasts show that more than one in five cars sold worldwide will be electric, equating to approximately 17 million vehicles.
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The EV market share should reach 45% in China, 25% in Europe and 11% in the United States, pushed by competition among manufacturers, falling battery and vehicle prices, and government support for electrification.
In China, many electric models are already cheaper than their combustion counterparts. The same is expected for most models in other major automotive markets, including Europe, by 2030.
