International Energy Agency predicts electric car sales to increase 35 percent compared to last year

The Agency expects 14 million in electric car sales by the end of 2023, which would represent a 35 percent year-on-year increase.

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In 2023, 2.3 million electric cars were sold in Q1—25% higher than electric car sales in the same quarter of 2022—and the International Energy Agency is predicting the growth to continue. The Agency expects 14 million in electric car sales by the end of 2023, which would represent a 35 percent year-on-year increase.

Therefore, electric cars could account for 18 percent of total car sales in 2023, the International Energy Agency (IEA) predicted.

“Electric vehicles are one of the driving forces in the new global energy economy that is rapidly emerging—and they are bringing about a historic transformation of the car manufacturing industry worldwide,” Fatih Birol, executive director of IEA said. “The trends we are witnessing have significant implications for global oil demand. The internal combustion engine has gone unrivaled 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.”

In 2022, electric cars made up 14 percent of all new cars sold and 9 percent in 2021, according to IEA’s Global EV Outlook 2023. The report said momentum from “national policies and incentives will
help bolster sales,” and electric car sales are expected to continue if there is a return high gas prices like in 2022.

According to the IEA’s report, China leads the world in electric car sales having more than half of all electric cars in the world, while the U.S. is the third largest market for electric cars having 8 percent of all electric car sales globally. In Europe, electric car sales increased 15 percent in 2022, while electric car sales increased 55 percent in the U.S. that same year, according to the report.

“Road transport accounts for over 40% of global oil demand, but electric cars are driving a major transformation of the auto industry,” Birol said. “Cars are just the first wave: electric buses and trucks will follow soon.”

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