A rapid shift toward electric vehicles is underway in developing countries, with adoption rates in some markets surpassing those in wealthier nations, according to BloombergNEF research highlighted on Bloomberg’s Zero podcast.
Colin McKerracher, head of transport at BloombergNEF, told host Akshat Rathi that plummeting battery costs and the rise of affordable, locally made EVs are accelerating the transition. In countries such as Nepal, Costa Rica, Thailand, and Vietnam, EVs already make up a significant share of new car sales, in some cases overtaking fossil-fuel models.
China continues to dominate the global market, with more electric cars expected to be sold in the final quarter of this year alone than the total number of vehicles — gas or electric — sold in the United States. “Over 50% of new car sales in China now have a plug, and consumer demand is far ahead of government targets,” McKerracher said.
The expansion of EVs in developing markets carries major implications for global oil demand. BloombergNEF estimates that electric vehicles of all types — from cars and buses to two- and three-wheelers — are already displacing about 2 million barrels of oil per day. The group forecasts that global road fuel demand will peak by the end of the decade, around 2029.
McKerracher emphasized that the trend is not driven solely by climate concerns but also by economics. “In many emerging economies, EVs have simply become the cheapest option. That’s when adoption really takes off,” he said. Bloomberg reporting has also highlighted Ethiopia’s recent ban on fossil-fuel car imports and the rise of Chinese EV sales across Africa as examples of this momentum.
