More than 1 in 5 cars sold around the world in 2024 are expected to be electric — and demand is poised to surge higher the next decade, according to the International Energy Agency (IEA).
The Paris-based multinational agency this week released the latest version of its Global EV Outlook report, which found that electric car sales will be “robust” throughout 2024. By the end of the year, buyers will purchase 17 million EVs, up from 14 million in 2023, according to the IEA.
Global EV sales grew 25% in the first quarter compared to the same time in 2023. That’s a similar growth rate seen across the first three months of 2023, according to the IEA. All in all, the number of EVs sold between January and March is “roughly” equivalent to the number of electric cars sold throughout the entirety of 2020.
“Rather than tapering off, the global EV revolution appears to be gearing up for a new phase of growth,” IEA Executive Director Fatih Birol said in a statement, noting that almost 1 in 3 cars sold in China by 2030 will be electric.
In China, about 10 million EVs are expected to be sold in 2024, accounting for 45% of all car sales in the world’s largest auto market. Chinese companies have been capitalizing on interest in EVs and accelerating research and development efforts to introduce both dirt-cheap and pricey luxury models.
BYD, China’s largest EV maker, sells the Seagull hatchback car for less than $10,000. Its high-end car brand Yangwang also sells the U9, a $233,000 “supercar” capable of reaching 62 miles per hour in just 2.36 seconds.
The IEA notes that growing EV exports from China may add downward pressure on prices in other markets, like the United States and Europe. Both the European Union and the U.S. have become concerned over China’s auto exports and may take action to stem the “flood.”
Europe is expected to account for about 25% of the EV market as both domestic and foreign automakers ramp up plans in the region. The U.S. will make up over 11% of the market this year, according to the IEA.
Although the IEA found that sales growth has remained largest similar to last year’s, many automakers are continuing to report poor EV sales and smaller margins. Ford Motor Co. on Wednesday said its EV unit took a $1.3 billion loss for the first quarter, or a loss of $132,000 on each electric car it sold.
