IEA Study: Demand for electric cars ‘booming’

Sales of electric vehicles are booming and are expected to account for nearly one in five cars sold this year, according to a report released Wednesday.

The International Energy Agency (IEA) said the rapid electrification of road transportation will have big implications for the energy industry as it will eliminate the need for five million barrels of oil per day by the end of the decade.

World oil consumption averages just over 100 million barrels per day.

“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,” IEA Executive Director Fatih Birol said in a statement.

In its annual report on electric vehicles, the IEA said it expects annual sales to rise 35 percent this year to reach 14 million.

It projected that to be a market share of 18 percent, up from four percent in 2020. The IEA said the overwhelming majority of electric car sales are concentrated in three markets: China, Europe and the United States.

China is in pole position, accounting for 60 percent of global electric vehicle sales last year, the IEA said.

It said measures such as the Inflation Reduction Act in the United States, which offers generous subsidies to consumers to switch to electric vehicles, would further boost sales in the coming years.

The IEA forecasts that the average share of electric cars in total sales across China, the EU and the United States is set to rise to around 60 percent by 2030.