China has achieved great success in the mass production and use of electric cars. In 2024, electric car sales in China exceeded those of internal combustion engine (ICE) vehicles for the first time. This could have a serious impact on the oil market.
Electric cars: a market-changing force
China has supported electric car manufacturers and invested heavily in infrastructure development. Throughout 2024, electric car sales in the country increased month by month. In July, electric car sales surpassed ICE vehicles for the first time. In November, a record was set — 1.4 million electric cars were sold.
However, nearly 40 percent of the electric cars sold are hybrid models, which still increase fuel demand. Nevertheless, this trend in China is causing new changes in the global oil market.
Impact on the oil market
In 2024, China's oil imports began to decline. In October, the country imported 10.53 million barrels of oil per day, which is 9 percent less compared to 2023. This indicates a slowdown in oil demand. However, China's oil consumption is not expected to decrease in the near future, as the petrochemical industry remains a major source of demand.
Conclusion
China continues to lead the electric car market, significantly impacting the global oil market. However, experts believe that China's oil consumption will remain stable at least until 2030. Meanwhile, other countries like India may become the main drivers of oil demand. Read “Zamin” on Telegram!
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