Global electric car market set for another year of substantial growth, says the International Energy Agency.
Electric car adoption shows no signs of slowing down. New forecasts from the International Energy Agency predict a record year in 2024 for sales of both battery-powered electric vehicles and plug-in hybrids, reaching an estimated 17 million units sold. This represents a whopping 20% increase compared to 2023, solidifying the rapid global shift towards EVs.
Perhaps even more significant is the IEA’s prediction that by 2030, the cost of most electric cars will be on par with their petrol counterparts. The industry has witnessed recent price cuts from leading manufacturers like Tesla, driven by competition from Chinese rivals like BYD. While some automakers may face challenges in this new landscape, lower electric vehicle prices will undeniably accelerate the transition – a huge win for consumers.
Global EV Momentum Continues
“There’s no mistaking it – the transition to electric cars is picking up pace, not slowing down,” stated energy economist Fatih Birol, who leads the IEA. “All around the world, we’re seeing major investments in battery manufacturing that will support ambitious growth plans by carmakers. It’s clear electric cars are here to stay.”
The IEA report highlights how sales of electric and plug-in hybrid cars in the first quarter of 2024 surpassed the total number sold across all of 2020. Although hybrids still emit significant CO2 during use, some in the industry believe they play a transitional role while public charging infrastructure improves.
Policies Drive EV Adoption
Norway leads the charge, with electric vehicles comprising 80% of new car sales in 2023. China and wealthier European countries are generally outpacing the rest of the world, including the United States, when it comes to EV adoption policies. Interestingly, the UK overtook Germany for the first time in terms of the largest electric car market during the first three months of 2023. Analysts like Matthias Schmidt attribute this in part to German manufacturers strategically timing their EV push to coincide with stricter emissions rules coming in 2025.
Unfortunately, here in the UK, the government axed subsidies for private purchases of electric cars in 2022. And even where grant funding exists, bureaucratic hurdles can hinder progress. Take, for instance, the Society of Motor Manufacturers and Traders’ recent concerns about delayed certification causing low usage of zero-emissions lorry grants.
