EV adoption avoided the use of 2.3 million barrels of oil per day in 2025

Growing global adoption of electric vehicles (EVs) helped avoid the consumption of 2.3 million barrels of oil per day in 2025, according to a modelled scenario from BloombergNEF.

Those fossil fuel savings are expected to increase every year for the rest of the decade as more drivers turn to battery-powered vehicles, said Mr Claudio Lubis, BNEF’s oil analyst.

The research group projects that by 2030, avoided daily consumption could more than double to 5.25 million barrels under the economic transition scenario, where governments deploy technologies that are economical rather than implement policies primarily driven by climate goals.

Two- and three-wheeler vehicles now make up the bulk of avoided road fuel use due to the fast rise of electric motorcycles, especially in developing nations.

As electric cars become more common, they are forecast to cut more oil demand later this decade.

A separate report released on March 18 by Ember, a London-based think-tank, found that the use of EVs avoided the consumption of 1.7 million barrels of oil a day in 2025.

Mr Daan Walter, an analyst at Ember, said the lower figure is based on conservative estimates of how often plug-in hybrid cars run on fossil fuels and heavy EV sales.

Ember calculates that at current consumption levels and with oil at US$80 per barrel, China would save over US$28 billion (S$35.7 billion) a year in reduced oil imports through its giant fleet of EVs, while Europe would save US$8 billion and India US$600 million per year.

Growth in global EV sales were expected to slow in 2026, with China winding down some subsidies, Europe abandoning plans to phase out combustion engines by 2035, and the US making a U-turn on clean tech policies.

But surging fuel prices driven by the conflict in the Middle East have reignited interest in EVs.

“Electric vehicles are increasingly cost-competitive with gasoline cars,” said Mr Walter. “Oil volatility means EVs are a common-sense choice for countries wishing to insulate themselves from future shocks.”

Electric car sales as a share of the total are above 10 per cent in 39 countries, compared with just four countries in 2019.

Asian nations are among the most rapid adopters, a trend that is already slowing growth in oil demand, the Ember analysis shows.

In 2025, China reached over 50 per cent of EV sales for the first time, while that share was 38 per cent in Vietnam, and 21 per cent in Thailand. BLOOMBERG