Sales of electric vehicles continue to soar around the globe, accounting for 13% of all new cars on the road..According to Bloomberg data, global EV sales hit 10.5 million units last year, up from, 8.3 million in 2021 and 4.2 million in 2020. According to the same data, sales of combustion vehicles appear to have peaked in 2017 at 69 million units and is now in structural decline..Ironically, the biggest gains were in China where EVs made up 26% of all vehicle sales. That figure is expected to surpass 30% in 2023. Even after factoring the surging popularity of plug-in hybrids that use both batteries and combustion engines, Bloomberg’s numbers suggest sales of gasoline powered cars has clearly peaked and is unlikely to recover.. China EV sales .It expects sales of combustion vehicles to stay relatively flat before falling off in earnest around 2026. In its modelling, overall oil demand from road transport is set to peak by 2027 depending on the uptake of commercial vehicles. It further notes 7% of all commercial vehicle sales in China were electric last year, including 5% of heavy haul trucks..The demand is being fuelled by generous incentives, even in China where the government subsidized EVs since 2009. Countries like the US and Canada are following suit.. Breakdown of car sales .It comes as governments around the world move to ban gasoline engines. The EU mandated all cars sold be electric by 2035, although Germany carved out an exemption for so-called green fuels. The US doesn’t have formal targets, but 13 states are filling California’s Zero Emissions Vehicle program to phase out gas powered cars by 2035, including all the usual suspects — New York, Oregon, Vermont, Washington etc. Ironically, Wyoming is the only state so far to actually ban EVs. .In December of last year Canada introduced its own regulations that will require 20% of all vehicles sold to be electric by 2026, 60% by 2030 and fully 100% by 2035. At present, about 7% of cars sold in the country are electric, but it varies by region. About 15% of sales in BC are EVs — the highest in the country — followed by Quebec at 11%, which also enjoys the cheapest electricity rates. Ontario sits around 6% while all other provinces and territories are less than 4%.. China vehicle sales .On top of a $5,000 incentive offered by the federal government, BC offers its own rebates of up to $4,000 at the point of sale for EVs that are bought or leased and $350 for chargers. Still, high up front costs, a lack of charging infrastructure and limited range of lithium-ion batteries are cited as the main barriers to higher EV ownership.
