IEA Forecasts Record Electric Car Market Growth To Twenty Three Million Units Driven By Regional Expansion And Dominant Chinese Manufacturing
The market projection from International Energy Agency suggests that the electric car market will set a new volume record in terms of units. According to the publication by IEA, total volume of sales and manufacturing are anticipated to reach 23,000,000 units. This is 30% of total car transactions forecast around the world and a fast change in consumer transport choices despite some corrections happening in regional markets.
It is indeed a new volume record, following 20,000,000 electric cars sold globally during the previous year, which meant an expansion of 20% in year on year term. Though global transactional volume has decreased by 8% in the first quarter of current year, overall market remains upbeat because of the outstanding result from key geographic areas.
Though the global market trend shows negative correction during the first quarter, the individual market areas remain on a fast growing trend, in Europe sales volume in the first quarter grew almost 30%,Asia pacific excluding China grew by 80%, Latin American markets continued their expansion by 75% compared to same period. Globally, one out of four new passenger cars sold is now electric, which signals steady growth driven by ongoing global energy uncertainty and fossil fuel price hikes, and this rise in fuel price in all key countries serves as a primary drive to boost consumer interest in electrified alternative, which would be higher than any recent subsidies modifications for consumer.
China continues to lead global electric car market from supply point of view. Over the last annual period, Chinese manufacturers have produced 75% of all electric car units sold in the market, and sold 60% of all electric car transactions globally. Their exports exceeded 2,500,000 units, again a new volume record in year on year comparison. This demonstrates over reliance on China in terms of battery supply chain and assembly operations.
