The International Energy Agency’s Global EV Outlook 2024 is projecting a surge in electric vehicle (EV) sales, with an estimated 17 million EVs sold worldwide in 2024. This growth is expected to continue, with the IEA projecting that 50% of all cars sold globally will be EVs by 2035, leading to a significant reduction in oil demand and a cleaner environment. The price differential between EVs and internal combustion engine vehicles has narrowed, making EVs a cost-effective and environmentally friendly option for consumers.
Despite recent reports suggesting a decline in EV sales, the reality is quite the opposite. In China, the world’s largest auto market, EV sales are projected to reach 10 million vehicles this year, making up 45% of all car sales in the country. Similarly, in the United States and Europe, EV sales are on the rise, with projections indicating a significant increase in market share for EVs in the coming years. By 2030, the IEA predicts that EVs will make up a significant portion of the total cars on the road in these regions.
Key factors contributing to the growth of EV sales include smart policies and investments in the EV industry. Policymakers in major auto markets such as China, the US, and the EU have provided certainty for automakers to make long-term investments in EV technology, leading to cost reductions and increased supply. Additionally, more than 20 automakers representing 90% of global car sales have set electrification targets, with significant investments in EV and battery manufacturing.
The costs of EVs are falling as technology improves and manufacturing expands, making EVs a more affordable option for consumers. In the US, the average transaction price for EVs has fallen to just under $51,000, closing the cost parity gap with gas-powered cars to just $2,000. Federal policies such as the Inflation Reduction Act and the Infrastructure Investment and Jobs Act have further accelerated the growth of the EV ecosystem in the US, with billions of dollars allocated for EV and battery factories and public charging stations.
The shift towards EVs is not only economically beneficial for consumers but also has significant environmental benefits. By driving electric, consumers can reduce their reliance on volatile oil prices and contribute to a cleaner environment by reducing tailpipe emissions. The Federal Trade Commission has revealed evidence of collusion among oil companies leading to high oil prices, which has cost American families thousands of dollars. Investing in EVs is a sustainable way to combat rising oil prices and improve air quality.
In conclusion, the growth of EV sales globally is set to revolutionize the auto industry and create a cleaner, more sustainable future. With projections indicating a significant increase in market share for EVs in the coming years, consumers are presented with an opportunity to not only save money but also contribute to a healthier environment by choosing electric vehicles. The momentum towards EV adoption is a clear indicator of a shift towards a more sustainable transportation sector, with policies and investments driving the transition towards electric mobility.
