Just 5.8% of new cars sold in America last year were electric, but the U.S. is behind. According to a new report from the International Energy Agency (IEA), “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.”
Forecast: 14 Million This Year, Just 1 Million in U.S.
The IEA is an intergovernmental organization created by the Organization for Economic Cooperation and Development, not part of the United Nations. Its mission is to work with governments and industry to reshape global energy consumption to be more sustainable.
The agency’s Global EV Outlook report 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.”
Kelley Blue Book parent company Cox Automotive projects that Americans will buy more than 1 million electric vehicles (EVs) in 2023 for the first time.
China Winning This Race
China is leading the charge — 60% of global EV sales in 2022 happened there. The agency says more than half of the world’s EVs are found on China’s roads.
But the IEA projects that “By 2030, the average share of electric cars in total sales across China, the EU and the United States is set to rise to around 60%.”
Six U.S. states have passed regulations requiring all new car sales to be emissions-free by 2035. A recent proposal to update federal fuel economy standards could lead to two-thirds of all new car sales being electric as soon as 2032.
Several Countries Attempting to Shift Manufacturing
However, the report warns, current global EV manufacturing “remains highly concentrated, with China dominating the battery and component trade.” The agency notes encouragingly that several “economies have announced policies to foster domestic industries that will improve their competitiveness in the EV market in years to come.”
They include the American Inflation Reduction Act on that list. Since its passage, the agency says, “Major EV and battery makers announced investments totaling at least USD 52 billion in EV supply chains in North America.”
The law restricts eligibility for federal EV tax credits to cars built in North America. Since the act passed, several automakers have moved EV production to new or expanded U.S. factories.
