Electric Vehicle Sales Hit Record 20 Million Units in 2024

A report by the International Energy Agency revealed that global electric vehicle sales reached 20 million units in 2024, a 35% increase compared to 2023, representing an unprecedented acceleration in the history of the automotive sector.

China dominated nearly half of these sales with 9.5 million units, followed by Europe with 4.2 million, then the United States with 1.8 million. The report noted that over 40% of cars sold in China are now electric.

Traditional automakers such as Toyota, Volkswagen, and General Motors expressed concern over the accelerating transition, amid a continuous drop in battery prices, which have fallen by 90% over the past decade.

Although Gulf states have been absent from the main markets in this sector so far, the UAE and Saudi Arabia are experiencing notable growth in consumer interest in electric vehicles, supported by government incentives. These figures pose an existential challenge to the long-term oil economies of the Gulf, making the economic diversification outlined in Visions 2030 and 2071 a necessity, not an option.

What do these terms mean?

Electric Vehicle (EV): A car powered by an electric motor fueled by a rechargeable battery, instead of an engine that burns gasoline. It is charged with electricity like a mobile phone. Declining battery prices have brought its cost closer to that of traditional counterparts.

Tipping Point: The moment when change becomes irreversible. In the auto market, it signifies the stage where gasoline ceases to be the dominant choice and electric becomes the new standard chosen by most consumers.

Lithium-ion Batteries: The most common battery technology in electric vehicles, identical to that used in phones but much larger in size. A 90% cost reduction over ten years is what has made electric vehicles affordable for the average consumer.