Nearly 30% of vehicles sold worldwide this year will be electric, with global EV sales expected to reach 23 million, the International Energy Agency said. The International Energy Agency released a report on Wednesday, finding that global EV sales will exceed last year’s growth, when global EV sales rose by 20% and accounted for nearly a quarter of all new cars sold worldwide.The growth in EV sales comes as the war in Iran has disrupted and raised energy prices. Gas prices in the United States have soared nearly 50% since the war in Iran started in late February. The international benchmark Brent crude and the U.S. benchmark West Texas Intermediate crude has stood around $100 per barrel since the war started.
“EVs are increasingly cost-competitive in key markets, which could reinforce demand, including from consumers worried about volatile fuel prices,” IEA said.
In the first quarter, IEA said global EV sales dropped by 8% compared to the same period last year, due to policy changes in China and the U.S.
In China, officials reinstated a 5% purchase tax on EVs. While in the U.S., the Trump administration and Republican lawmakers have rolled back a number of measures supporting the EV market, including slashing tax credits and weakening emission standards.
