Electric vehicle sales are projected to rise sharply in 2024 despite persistent challenges in some markets, according to the International Energy Agency (IEA).
The group forecasts that worldwide sales of battery-powered cars will reach 17 million units this year. The number represents an increase of 21% from last year’s 14 million and would roughly equate to one out of every five car purchases being for an electric vehicle.
The IEA’s prediction arrives amidst a global cooldown in electrified car demand, which has suffered from a variety of challenges linked to affordability and inadequate charging infrastructure. However, while the agency acknowledges that “Tight margins, volatile battery metal prices, high inflation, and the phase-out of purchase incentives in some countries” have led some to worry about the electric vehicle segment’s viability, it stresses that “global sales data remain strong.”
That being said, the IEA anticipates that the pace of growth will vary heavily between markets. In the U.S., battery-powered cars are expected to account for one out of every nine car purchases, while in Europe, their share is projected to reach one in every four. In China, where domestic brands such as BYD have leveraged access to cheaper labor and a cost-efficient lithium supply chain to lower costs, electric vehicles are set to comprise half of all car sales this year.
However, even China has been hit by a cooldown in electrified demand, as evidenced by BYD’s sales dropping 43% in the first quarter compared to the preceding period. The IEA expects affordability to play a key role in the global electric vehicle market this year, dictating which regions will overcome their challenges to spur sales and which will continue to see under-average growth.
