A recent report from the International Energy Agency (IEA) estimates that approximately 220 million electric vehicles (EVs) will be on the roads by 2030, a near tenfold increase from the 26 million recorded in 2022.
This anticipated growth in EVs suggests that the demand for fossil fuels, including oil, natural gas, and coal, will reach its peak within the next seven years.
Fatih Birol, the IEA’s executive director, emphasised the swift global shift towards achieving net zero, stating that "the transition to clean energy is happening worldwide and it’s unstoppable. It’s not a question of ‘if’, it’s just a matter of ‘how soon’ – and the sooner the better for all of us”.
The IEA's latest World Energy Outlook (WEO) report indicates that EVs are projected to account for 38% of new sales globally by 2030, noting that sales exceeded 10 million in 2022 alone.
Released on Tuesday, the report also mentioned that China has surpassed its 2025 EV sales target, with further growth expected due to subsidies.
However, it's worth noting that electric cars currently have a higher price point compared to their petrol and diesel counterparts.
In related news, last month, the UK announced a delay in its ban on new petrol and diesel vehicles to 2035, citing concerns over costs for British families.
Despite the optimistic projections, there have been challenges in the EV market.
High production costs have impacted demand, leading some of Germany's major car manufacturers to reduce EV production.
Volkswagen Group (XETRA:VOW), Germany's leading carmaker, expressed concerns about a decrease in the willingness to purchase electric cars earlier this summer.