Global EV Sales Expected to ‘Leap’ 35% in 2023

• Globally, EVs accounted for about 4% of new vehicle sales in 2020 and leapt to 14% in 2022, on its way up to approximately 18% this year, the IEA report says.
• The US is expected to double its share of the global EV market to 20% by the end of the decade, the IEA says, while Europe is expected to maintain its current 25% share of the global EV market.
• China should remain the world’s No.1 EV seller in 2030, with 40% of the global market, the study says.

Electric-vehicle sales will reach 14 million globally in 2023, up from 10 million last year, the International Energy Agency estimates in its annual Global Electric Vehicle Outlook released Wednesday, and “landmark EV policies are driving the outlook for EVs closer to climate ambitions.” Globally, EVs accounted for about 4% of new vehicle sales in 2020 and leapt to 14% in 2022, on its way up to approximately 18% this year, the report says.

The IEA works with governments and industry to “shape a secure and sustainable energy future for all.” The US is expected to double its share of the global EV market to 20% by the end of the decade, the IEA says, “as recent policy announcements drive demand,” while Europe is expected to maintain its current 25% share of the global EV market. China should remain the world’s No.1 EV seller in 2030, with 40% of the global market, the study says.

The Biden administration is trying to push faster adoption in the US, as the Environmental Protection Agency wants EVs to account for 67% of new light-duty cars and trucks in the US by 2032, according to new emission standards proposed earlier this month. The ambitious climate policy in the US also faces pushback by the oil industry. The report predicts global oil demand from road transport will peak about 2025, “with EVs displacing oil demand for more than 5 million barrels a day (globally) in 2030.” China is the third-largest oil consumer in the world, behind the US and European Union.

The IEA harbors no fears of battery supply shortages. As of this March, battery manufacturers worldwide have committed to increased capacity sufficient “to meet the demand implied by government pledges,” and even exceed them. This comes as General Motors and Samsung announced on Tuesday it will spend at least $3 billion on a new battery manufacturing plant in the US, to open in 2026. Recent studies indicate a majority of consumers are put off by the cost of EVs—currently about $58,000 on average in the US, compared to a $49,000 average transaction price for internal-combustion vehicles.

But the IEA says, “as spending and competition increase, a growing number of more affordable models are coming to market.” Expect to see automakers offering electric power in an ever-widening variety of model segments.