Electric car sales to grow 35% to hit 14m in 2023 amid sustainability push: IEA

The sale of electric cars is expected to increase by 35 percent in 2023 to hit 14 million, up from the 10 million sold in 2022, as the world continues its drive toward a sustainable future, according to a report released by the International Energy Agency.

In its Global EV Outlook 2023 report, the IEA noted the share of electric cars in the overall market has risen from around 4 percent in 2020 to 14 percent in 2022 and is set to increase to 18 percent this year.

The IEA further noted this rapid electrification of transport vehicles will eliminate the need for five million barrels of oil per day by the end of the decade.

“Electric vehicles are one of the driving forces in the new global energy economy that is rapidly emerging — and they are bringing about a historic transformation of the car manufacturing industry worldwide,” said IEA Executive Director Fatih Birol.

He added: “Cars are just the first wave: electric buses and trucks will follow soon.”

According to the IEA, the majority of electric car sales to date are mainly concentrated in three markets: China, Europe and the US.

The IEA further noted that China accounted for 60 percent of global electric car sales in 2022.

Europe and the US, the second and third largest markets, also saw strong growth with sales increasing by 15 percent and 55 percent respectively in 2022.

Apart from the US, Europe and China, electric car sales in countries such as India and Indonesia tripled in 2022, while sales figure doubled in Thailand.

The IEA added that in emerging and developing economies, two- or three-wheeler vehicles outnumber cars. The report pointed out that over half of India’s three-wheeler registrations in 2022 were electric.

“In many developing economies, two- or three-wheelers offer an affordable way to get access to mobility, meaning their electrification is important to support sustainable development,” the report added.