Recently, sales of electric vehicles have increased significantly, surpassing 1 million in 2017 after growing 56% from 2016. The number of electric vehicles (EVs) worldwide could triple to 13 million over the next two years, said by the International Energy Agency on May 30.
In addition, electric cars are also developing rapidly. Last year, the total number of electric cars increased by 57% over the previous year, of which China accounted for 40% of that growth. The changes suggest that the global transportation system is rapidly shifting to cleaner fuel as governments focus on limiting pollution and greenhouse gas emissions.
Source: IEA’s Global Electric Vehicle Outlook 2018
Dynamic market of electric vehicles has experienced strong growth in recent years. “Ongoing support and commitments for increased deployment of EVs from policy makers and the automotive industry suggest that this trend is not going to abate in the coming decade” the IEA said in a report.
The decline in the cost of the battery is the key factor in the acceleration of electric vehicles sales. The high cost of batteries is the main reason that the cost of electric vehicles is higher than that of conventional gasoline or diesel powered vehicles. Therefore, supporting the development of electric cars requires economic incentives such as rebates, tax cuts or exemptions.
Here are some of the key findings of the IEA’s report:
China will remain the biggest market
The International Energy Agency estimates that electric vehicles sales in Asian countries are expected to exceed a quarter in a decade’s time. More than half of global sales will come from China, followed by the US.
The Chinese government has formulated a series of policies to stimulate electric vehicles, aiming to reduce smog pollution in urban air pollution. In 2017, the Beijing government established a minimum requirement for electric vehicle production for domestic automobile manufacturers through a credit trading system.
EVs will displace lots of oil from the market
Electric cars use rechargeable batteries instead of gasoline or diesel fuel used in conventional cars. It is estimated that 130 million light vehicles will be on the world’s roads, saving 2.57 million barrels of oil a day. This is almost equivalent to the daily usage in Germany. Last year, the global fleet of electric vehicles replaced demand for 380,000 barrels a day, which is about half of Belgium’s consumption.
The IEA expects that by the end of the next decade, there will be 223 million barrels of oil replaced by electric vehicles per day.