Every fifth car sold this year will be electric: report


Electric vehicles are rapidly penetrating the automotive sector, with one in five cars expected to be sold this year expected to be electric, according to an outlook report from the International Energy Agency (IEA). Electric vehicles are expected to account for nearly a fifth of the global market this year, with sales expected to rise 35% to 14 million units, or 18% of the market, compared with just 4% in 2020, the company said.

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Updated on:
April 26, 2023 at 12:46 am

A Chevrolet Bolt EV parked at a Stewart Chevrolet charging station.  (AFP Getty Images)
A Chevrolet Bolt EV parked at a Stewart Chevrolet charging station. (AFP Getty Images)

According to the report, the switch from internal combustion engines to electric vehicles will reduce global oil demand by at least 5 million barrels per day. SUVs and large sedans account for nearly two-thirds of all-electric vehicles in China and Europe, and even more in the United States. “Outside of China, original equipment manufacturers (OEMs) need to offer affordable and competitively priced options to enable mass adoption of electric vehicles,” the report said.

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In emerging and developing economies such as India, two- or three-wheeled electric vehicles outnumber cars. More than half of all three-wheelers registered in India will be electric by 2022, research shows.

A Moody’s Investors Service report earlier this month showed that while India has the world’s third-largest auto market, EV penetration is currently only around 1%. In 2022, India beat Japan to become the third largest auto market after China and the United States.

The report states that certain factors will play a key role in accelerating the adoption of EVs. These factors are government incentives including incentives for consumers, local battery manufacturing, state-level subsidies and reduced GST rates. To meet the government’s target of 30 percent growth by 2030, the rate at which EV sales will grow will also depend on the country’s charging infrastructure, the time it takes to recharge vehicles, and consumers’ readiness to switch to EVs.

First published date: April 26, 2023 at 12:44pm CST


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