A latest report from the International Energy Agency said that with the rise of Electric Vehicle (EV) boom in China, its dependency on fossil fuels like oil is set to plummet.\
“China will continue to dominate growth in petrochemicals and gains of 1.4 mb/d in feedstock products will be close to the country’s overall increase to 2030. On the other hand, rapid deployment of clean energy technologies will balance strong underlying mobility growth. Climbing EV sales and the impacts of infrastructure investments such as high-speed rail have blunted gasoline demand growth and
China’s use of the fuel is set to peak by 2025,” the report said.
It however also added that while several developed economies in the western countries are planning to reduce their dependency on oil, emerging economies like China and India are set to see a rise in the oil demand. However the massive growth of renewables and EVs in the South Asian country might alter the whole game.
“Growth will be dominated by Asian economies, especially India and China, as oil demand’s pivot to emerging markets continues. Demand from the two Asian economic powerhouses will develop in very different ways, however. In China, growth is set to be driven by the petrochemical sector as rapid deployment of clean
energy technologies and massive infrastructure investments in high-speed rail
blunt demand for transport fuels,” the IEA report said.
The report said that the EV phenomenon remains primarily a Chinese one. In 2023 the majority of EV sales were in China (60%), with Europe (25%) and the United States (10%) accounting for the bulk of sales elsewhere.
“This dominance is set to continue – almost one in three cars on the roads in China by 2030 is expected to be electric, compared to almost one in five in both the United States and the European Union. Along the same lines, more than half of all EVs sold globally were produced by Chinese carmakers, compared to only 10% for internal combustion engine (ICE) cars,” the report said.
