Global electric vehicle sales close to one in five sold
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Written by: Theresa Smith
The latest edition of the IEA’s annual Global Electric Vehicle Outlook show more than 10 million electric cars were sold in 2022. And, they suggest sales for 2023 are expected to grow by another 35%.
This explosive growth means the overall share of electric cars in the market has risen from 4% in 2020, to 14% in 2022. And, the IEA projects it will increase to 18% this year.
The IEA thinks global sales of electric cars are set to surge again in 2023, expanding their share of the overall car market to close to 20%. The Agency sees this as suggestive of a major transformation of the automobile industry in the offing. This would have implications for the energy sector, especially the oil industry.
IEA Executive Director Fatih Birol says the trends we are witnessing have significant implications for global oil demand. “The internal combustion engine has gone unrivalled for over a century, but electric vehicles are changing the status quo. By 2030, they will avoid the need for at least 5 million barrels a day of oil. Cars are just the first wave: electric buses and trucks will follow soon.”
China dominates electric car market in sales terms
While three markets dominated global sales, China was the frontrunner, accounting for more than 60% of the world’s electric car sales. More than half of the electric cars on the road worldwide, are now to be found in China. The country has already exceeded its 2025 targets for new energy vehicle sales.
Europe is the second largest market, with electric car sales increasing by more than 15% in 2022. That mean more than one in every five cars sold was electric. The third largest market is the United States of America – they reached a sales share of 8%, an increase of 55% since 2021.
Global EV Outlook 2023 by the International Energy Agency (IEA) claimed that around half of India’s three-wheeler registrations in 2022 were electric, hinting at the increased penetration of electric mobility in the country.
— India Battery Swapping Association (IBSA) (@INDBatterySwap) April 28, 2023
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Global EV sales to surge +33% in 2023! #EVs continue to revolutionise the automotive industry, thanks to gov support in China, Europe & US. IEA's new Global Electric Vehicle Outlook provides latest data. Read @SPGCI article: https://t.co/QNr8rFnlnM pic.twitter.com/cNyyZQK5A9
— S&P Global (@SPGlobal) April 27, 2023
Electric vehicle models still skewed towards the unaffordable for developing markets
Model available still remains an issue in emerging markets and developing economies. Many of the options for sale are geared towards the higher end of the market, such as large and luxury models and SUVs. The trend for SUVs is global, but purchasing power is more limited in emerging markets and developing economies (EMDEs), rendering these vehicles mostly unaffordable.
Across the various regions mentioned in the report, for a total of more than 60 EMDEs, including those territories supported by the Global Environment Facility’s Global E-Mobility Programme, there were two to six time more large models available than small ones in 2022.
The best-selling electric car model in 2022 in Africa was the Hyundai Kona, which is a crossover battery electric vehicle (BEV). And, there were about as many recorded sales of Porsche’s large and expensive Taycan BEV as there were of the medium-sized Nissan Leaf.
Of interest
How motorbikes can push-start e-mobility
Who is hitting the NDC targets for electric vehicles?
Analysis of NDC content shows that only Nicaragua and Trinidad & Tobago have specific transport emission reduction targets. A further 12 countries spread across Latin America, Central America, Africa and Asia – making up around 0.9 million annual light duty vehicle (LDV) sales – have specific EV targets or ambitions.
Of these, four countries have EV ambitions or targets for LDVs and business, three for LDV targets only and four more for bus targets. Mauritius and Rwanda do not have any specific EV targets, but have identified vehicle electrification a a key strategy and they are monitoring adopt metrics.
Though most prevalent in Asia, battery swapping for electric two-wheelers is spreading to Africa. In Rwanda, electric motorbike start-up Ampersand operates battery swap stations with a focus on serving motorcycle taxi operations that require long daily ranges. Ampersand has also built ten battery swap station in Kigali and three in Nairobi, Kenya. These stations perform close to 37,000 battery swaps a month.
Not in the report, but hitting recent headlines is Ghana’s National Electric Mobility Roadmap, which details plans to detail with transport energy-related emissions and how it will use e-mobility to address emissions.
The IEA Global EV Outlook 2023 is an annual publication that identifies and discusses recent developments in electric mobility across the globe.
Our Global EV Outlook 2023 report includes two dynamic dashboards enabling users to dig deeper into EV trends & policies around the world.
— International Energy Agency (@IEA) April 28, 2023
Try them out 👇
🔢 EV data explorer → https://t.co/AQA7kfrGgz
📑 EV policy explorer → https://t.co/PTPWX8ch1J pic.twitter.com/HM6D5AlUDw
