Report: Chinese electric car imports increasing pressure on prices
The International Energy Agency (IEA) has weighed in on the debate over how to expand the electric car market, saying on Tuesday that growth will depend on their affordability and the availability of charging points.
Increasing exports of electric cars from Chinese manufacturers, which accounted for more than half of global sales in 2023, could further increase the pressure on car prices, the IEA said on Tuesday in its annual Global EV Outlook.
Chinese companies with production facilities abroad had achieved strong sales in overseas markets with more affordable models launched in 2022 and 2023, the agency said.
In China, more than 60% of electric cars sold in 2023 were cheaper to buy than an equivalent combustion engine model, the IEA reported.
In Europe and the United States, on the other hand, purchase prices for combustion engine cars are still cheaper on average.
"Tight margins, volatile battery metal prices, high inflation, and the phase-out of purchase incentives in some countries have sparked concerns about the industry’s pace of growth, but global sales data remain strong," the report said.
The IEA said that the availability of public charging points must keep pace with the sales of electric vehicles in order for growth to continue.
The number of public charging points installed worldwide increased by 40% in 2023 compared to the previous year.
According to the energy agency's analysis, charging networks will need to grow six-fold by 2035 in order to achieve the penetration of electric vehicles that governments are aiming for.
Last year, global sales of electric cars rose by 35% to almost 14 million, according to the IEA. Sales of around 17 million electric cars are expected for 2024.
