The Society of the Irish Motor Industry (SIMI) estimates that 55% of new cars sold between now and the end of 2030 will be electric or plug-in electric.
The Government aims to have 30% of cars as electric vehicles by 2030.
This would mean that there would be 845,000 private electric vehicles and 95,000 commercial ones by the end of the decade.
SIMI General Secretary Brian Cooke said the Climate Action Plan targets on electric vehicles (EVs) are "hugely challenging".
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"Based on the current level of new car sales which is just over 100,000 a year, we are looking at more like 500,000 electric vehicles on the road by 2030."
Speaking on RTÉ's Morning Ireland, he said there needs to be a significant increase in the level of overall new car sales and, in particular, EVs.
He said if there is a stronger new-car market in excess of 160,000, manufacturers "will be able to satisfy" supply if that level of demand is there, particularly towards the end of the decade.
He claimed EVs are more expensive but there are currently "strong" Government supports in place.
In terms of cost, the Sustainable Energy Authority of Ireland said "it is important to look at the total cost of ownership" rather than the up-front cost, pointing to Government grants, VRT reduction and cheaper running costs.
Mr Cooke also expressed concern about a possible rise in tax.
"If we are looking towards the next seven or eight years, the signal is tax is going to increase on electric vehicles. So we need a taxation system that actually supports the electric-vehicle market," he said.
He also said focusing on car usage instead of car ownership is a good principle and "building block" for reducing transport emissions.
