plug-in

Media coverage of electric cars in this country is pretty confusing. Are electric cars taking over or has the EV bubble burst?

EVs currently represent about 8% of the US new car market. But they continue to face some relatively unique headwinds in this country. A very powerful and influential oil industry makes sure that anti-EV stories occupy center stage in the media. Traditional car dealers don’t want to sell EVs because they don’t make much money from parts and service. And EVs often find themselves tangled up in American politics.

Meanwhile, the rest of the world tells a very different story. Globally, EVs constitute 20% of new car sales, but in some places, they are doing much better than that.

So far this year, almost 87% of new car sales in Norway are electric and in August, the figure was 94%. Norway has some incentives in place for EV owners, but the fact that nearly all new cars on the road are electric is far more than the result of incentives.

One might argue that Norway, a country with only 5 million people, faces a much easier task of transitioning to EVs. But how about China with its 1.4 billion people? In July, plug-in vehicles in China were 51% of new auto sales. And the numbers continue to rise.

There are plenty of articles out there explaining why electric cars just can’t meet people’s needs, have insurmountable problems, and how having too many of them would collapse electric grids and otherwise wreak havoc with society. Apparently, the Norwegians and Chinese, among a growing number of other countries, haven’t gotten the memo.

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Elbil Thinks Electric Car Sales In Norway Could Hit 100% By Next Year

Photo, posted July 27, 2024, courtesy of Amaury Laporte via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

There has been lots of talk recently about the transition to electric vehicles sputtering out. Several automakers have delayed their EV programs citing reduced demand for the vehicles and lack of profitability. In the bigger picture, the auto industry as a whole is in a rough patch as rising interest rates and other factors have reduced car buying.

Despite all this doom and gloom talk, sales of electric vehicles will hit an all-time high this year. Adoption of EVs is accelerating more quickly than many people expected and government policies in China, the United States, and Europe have had a significant impact on vehicle sales. In China, 37% of new cars sold last year were electric. The country hit its 2025 target three years early and this year the figure could hit 45%.

But even as electric car sales rapidly increase, oil demand has continued to climb, reaching 100 million barrels a day, slightly more than it was before the COVID-19 pandemic. The International Energy Agency expects that oil demand will peak before the end of this decade, but oil consumption could remain strong for decades unless there is further policy action encouraging the transition away from it.

Some experts say that the IEA’s models don’t take into account how quickly the world is changing. New emission rules are expected to speed the adoption of EVs and plug-in hybrids. In addition, falling battery costs are making the economics of electric vehicles increasingly attractive. If EV adoption accelerates more rapidly than these models predict, then oil consumption could drop much more quickly.

However, the oil industry is deeply embedded in modern life and is not likely to fade away without a fight.

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EV Sales Are Taking Off. Why Is Oil Demand Still Climbing?

Photo, posted September 9, 2020, courtesy of Chris Yarzab via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Electric cars: Boom or bust?

Media coverage of electric cars in this country is pretty confusing. Are electric cars taking over or has the EV bubble burst?

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EV growth and oil demand

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