The tanker market is witnessing significant changes due to the growing electric vehicle (EV) market, particularly in China. In 2024, China accounted for approximately two-thirds of global EV sales, with battery electric vehicles (BEVs) making up 27% of all passenger cars sold. This is a significant lead over Europe, which recorded 13%, and the United States at 8%.
The governmental support for automakers and consumers, along with an extensive expansion of public charging infrastructure, has been crucial in this transformation. China experienced a remarkable 38% surge in EV sales year-on-year, totaling 11.2 million units. While BEV sales dominate, their growth is witnessing a deceleration, with plug-in hybrid electric vehicles (PHEVs) gaining traction, comprising 43% of the total EV market.
In the United States, 2024 saw a rise in EV sales due to federal incentives, amounting to $23 billion from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. Nevertheless, US EV adoption lags behind China, with BEV and hybrid vehicle sales reaching 1.3 million and 1.9 million units, respectively. Political challenges are looming, particularly after former President Trump signed an executive order halting the distribution of funds for EV development while revoking ambitious EV sales targets.
Meanwhile, Europe experienced a decline in its EV market in 2024, with a 1.3% drop in BEV sales, greatly influenced by declining figures in Germany. Factors such as phasing out subsidies and increasing costs diminished demand. The PHEV segment faced an even sharper decline of 3.6%, and regulatory uncertainties surrounding emissions targets add further challenges.
Looking ahead, while China is set to maintain its dominance in the global EV market, the United States and Europe may experience a slower transition due to political and economic hurdles. The evolving landscape of the EV market signifies a transformation in energy demand, especially in oil transport, though the pace of this change is likely to differ across regions.