Electric vehicle sales are on the rise and the price of small electric vehicles is expected to fall

BERLIN – Nearly one in five cars sold globally this year will be electric, with prices for smaller electric models set to drop to compete with internal combustion engine car prices in North America and Europe. in the mid-2020s, the International Energy Agency (IEA) predicts. Wednesday.

The agency raised its forecast for electric vehicle sales in part because of the U.S. Inflation Reduction Act, an act that supports green industry and subsidizes consumer car purchases. tramIEA CEO Fatih Birol said in a media call.

China outstanding features, which account for half of EVs on roads worldwide, include battery- and plug-in cars crossbreedand with 60% of EV sales last year taking place there, according to the IEA’s annual outlook for electric vehicles.

The IEA’s head of energy technology policy, Timar Guell, said the country has also seen the prices of some smaller EV models fall below the prices of comparable internal combustion engine models. .

The report says global sales of electric cars are expected to grow 35% this year to 14 million units, accounting for 18% of the passenger car market, up from just 4% in 2020.

“Our current expectation is that we might see price parity across SMEs. Electric Car in the North American and European markets somewhere in the mid-2020s… for larger vehicles like SUVs and pickups, parity buying is likely to take place later, possibly into the early days. 2030,” said Guell.

Birol said governments are investing in the expansion of electric vehicles due to environmental concerns, to promote industrial policy and reduce dependence on oil, demand will fall by 5 million barrels per day by 2030. due to the electric vehicle transition.

SUVs and full-size cars account for nearly two-thirds of electric vehicles in China and Europe and a larger percentage in the United States.

In emerging and developing economies, two- or three-wheeled electric vehicles outnumber cars. According to the study, more than half of the tricycles registered in India by 2022 are electric.

Reporting by Victoria Waldersee; Editing by Friederike Heine, Miranda Murray and Bernadette Baum