Price of EVs and ICE-powered cars will soon be at par.
The International Energy Agency (IEA) declares that demand for petrol will eventually decline.
The U.S. Inflation Reduction Act is behind this bigger forecast for EV adoption from the Agency.
According to the International Energy Agency, the price of electric vehicles will match that of vehicles with combustion engines as early as the middle of this decade.
“Our current expectation is that we can see price parity in small and medium-sized electric cars in North America and European markets somewhere in the mid-2020s, said the IEA’s energy technology policy head, Timar Guel in an interview with Automotive News Europe.
The Paris-based organization also said it expects electric vehicle sales to grow by 35 percent to surpass the 14 million mark. This strong growth would also allow electric cars to occupy about 18 percent of market share. In 2020, that market share was only 4%.
Unfortunately for consumers interested in full-size crossovers and pickup trucks, parity with gasoline models will have to wait until later in the next decade.
The IEA also expects the Chinese market to meet the agency’s forecast, particularly because half of all electric vehicle sales already come from China.
The agency raised its forecast for EV sales in part because of the U.S. Inflation Reduction Act, which supports the green industry and subsidizes consumer purchases of electric vehicles.
And this growth in EV sales will eventually be accompanied by a decline in demand for oil, with the IEA expecting a decrease of about five million barrels per day by 2030.
