One in every five cars sold this year will be electric: Report
Electric mobility is penetrating the automotive space at a fast pace and it is expected that one in every five cars sold this year will be an electric vehicle, as per the International Energy Agency's (IEA) outlook report. It said that electric cars are expected to make up nearly one-fifth of the global market this year as sales are expected to grow by 35% to reach 14 million, comprising 18% of the market - up from just 4% in 2020.
The report noted that the shift from combustion engine to electric cars will reduce global demand for oil by at least five million barrels a day. SUVs and large cars account for nearly two thirds of battery-electric models in China and Europe and even more in the United States. "Outside of China, there is a need for original equipment manufacturers (OEMs) to offer affordable, competitively priced options in order to enable mass adoption of EVs," the report said.
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In emerging and developing economies, such as India, two- or three-wheel electric vehicles outnumber cars. Over half of India's three-wheeler registrations in 2022 were electric, the study revealed.
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A report published by Moody's Investors Service earlier this month revealed that though India has the third-largest car market globally, EV penetration is currently only around 1%. In 2022, India beat Japan to become the third-largest vehicle market after China and the US.
The report stated that certain factors will play a key role in accelerating the adoption of EVs. These factors are government incentives, including those to consumers, local battery manufacturing, state-level subsidies and cut in GST rates. The pace of increase in EV sales to meet the target set by government - 30% by 2030 - will also depend on the country's charging infrastructure, time taken to charge vehicles as well as consumers' readiness to switch to EVs.