Electric vehicle sales will grow 35% year-on-year to 14 million by the end of 2023 thanks to national policies and incentives, according to a new report by the International Energy Agency (IEA).

What happened: Electric cars accounted for 14% of new cars sold in 2022 and would account for 18% by the end of 2023, according to a new report released Wednesday by the intergovernmental organization. The rise in popularity would be helped by the rise in oil prices, the report added.

The IEA now projects that electric cars will account for 35% of new car sales by 2030, compared to the previous projection of 25%.

China will continue to be the largest market, accounting for 40% of total sales, while the US will double its market share to 20%. The amount of oil displaced by electric vehicles would exceed 5 million barrels a day by 2030, the report added.

“The internal combustion engine has been unrivaled for over a century, but electric vehicles are changing the status quo,” said IEA Executive Director Fatih Birol.

Why it matters: According to the report, the US is now the third largest market for electric vehicles. In 2022, electric vehicle sales increased by 55%, reaching 8% of sales.

In the USA, Elon Musk-LED Tesla Inc TSLA is a leader in electric vehicles by production and supply. The company also saw one of its vehicles break down the top 10 best-selling vehicles the entire industry over the past year.

Earlier this month, the Joe Biden administration built on that existing vision for clean transport And proposed new emission standards The goal is for electric vehicles to account for more than two-thirds of all light commercial vehicle sales by 2032.

The IEA predicts that the Anti-Inflation Actcombined with adoption of California’s Advanced Clean Cars II regulation by a number of states, could achieve 50% market share for electric cars by 2030, in line with the national goal.

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