Global sales of electric cars are set to surge to yet another record this year, expanding their share of the overall car market to close to a fifth and leading a major transformation of the auto industry that has implications for the energy sector, especially oil.

The latest edition of IEA’s Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to grow by another 35% this year to reach 14 million. This explosive growth means electric cars’ share of the overall car market has risen from around 4% in 2020 to 14% in 2022 and is set to increase further to 18% this year, based on our latest projections.

The overwhelming majority of electric car sales to date are mainly concentrated in three markets – China, Europe and the United States. And ambitious policy programmes mean that by 2030, the average share of electric cars in total sales across those three markets is set to rise to around 60%.

The trends have significant implications for global oil demand. By 2030, the growth of electric vehicles will avoid the need for at least 5 million barrels a day of oil worldwide.