International Energy Agency reports strong global EV sales
On April 23rd, the International Energy Agency (IEA) released its annual report on worldwide electric mobility trends, “Global EV Outlook 2024.” The publication documents robust growth in the sale of electric vehicles across major auto markets, with the bulk of new EV sales occurring in China (60%), Europe (25%), and the United States (10%). The promising global trends identified by the IEA contradict gloomier assessments heard here in the U.S., where many have suggested that EV adoption is losing momentum.
The upbeat report begins with a compelling barrage of very encouraging statistics. According to the IEA, new EV sales could reach “around 17 million in 2024, accounting for more than one in five cars sold worldwide.” 2023 was a banner year for global EV sales, with market share reaching 18% on sales of nearly 14 million vehicles. The market share figure was considerably higher than the 14% recorded in 2022. The global EV sales figure rose by about 3.5 million vehicles, representing a 35% year-on-year increase. The rapid pace of growth was down slightly during the first quarter of 2024, but still quite strong, with global EV sales 25% higher than sales recorded during the first quarter of 2023. To emphasize the dramatic progress that has been made over the last decade, the IEA reports that, on average, over 250,000 EVs were sold each week during 2023, which is more than all the EVs sold in 2013.
China is far ahead of most other nations in its transition to electric vehicles, and its global leadership is well documented in the IEA’s analysis. According to the report, 8.1 million new EVs were registered in China during 2023, representing 60% of the new EVs sold worldwide and an increase of 35% over registrations in 2022. One out of three cars sold in China during 2023 was an EV, significantly more than Europe’s one out of five and considerably more than the one out of ten sold in the United States. In March of this year, EV market share in China surpassed 40% for the first time. Increasing EV sales were primarily responsible for moderate growth in China’s overall auto market, which grew 5% in 2023 despite an 8% drop in the sale of internal combustion vehicles. The IEA report also notes that China exported over 4 million cars in 2023, 1.2 million of which were EVs, surpassing Japan as the world’s largest auto exporter.
The report provides little evidence that enthusiasm for EVs within the United States is fizzling out. According to the agency, new EV registrations in the U.S. rose to 1.4 million in 2023, 40% higher than in 2022. Our EV sales share stood at 2% in 2020, 5% in 2021, 7% in 2022, and 10% in 2023, indicating strong, consistent growth. In the first quarter of 2024, 350,000 EVs were sold, which is 15% higher than the EV sales figure from the first quarter of 2023. While the 15% increase represents a slower rate of growth than the hefty 40% increase achieved in the U.S. from 2022 to 2023, it is difficult to argue that the recent slowdown is more significant than the long-term trend. Electric vehicles continue to get better and better, charging infrastructure is expanding rapidly, and there is growing concern about the worsening climate crisis. The IEA predicts that up to two thirds of all vehicles sold worldwide could be electric by 2035, reducing oil consumption by 12 million barrels per day. If current trends continue, U.S. auto consumers will be making a significant contribution to that valuable progress.