Sales growth is also anticipated in South Asia and Oceania, with projections ranging from 16 to 28 million units, alongside increases in the Middle East, Africa, and South America.

To achieve climate objectives, the study emphasizes the need for enhanced ICEV fuel efficiency, decarbonization of electricity grids, and robust EV policies.

A recent study forecasts significant growth in light-duty vehicle (LDV) and electric vehicle (EV) sales by 2035, driven by various economic growth scenarios and demographic trends, particularly focusing on the working-age population.

Global LDV sales are projected to reach between 93 and 124 million units by 2035, with China leading the charge at an estimated 27 to 35 million units.

If electrification targets are successfully met, global demand for EVs could soar to between 59 and 73 million units.

Interestingly, 80% of EV sales are anticipated to contribute to new mobility growth instead of merely replacing existing vehicles.

The Internal Combustion Engine Vehicle (ICEV) fleet is expected to continue expanding until the mid-2040s, particularly in emerging markets, where EVs will add to the total vehicle stock rather than replace ICEVs.

Despite the rise of EVs, ICEV sales are projected to remain stable, with over 70% of sales in 2035 focused on replacing retiring vehicles.

In more developed regions like Europe and the US, the transition from ICEVs to EVs is expected to occur at a faster pace.